Author: Emily Bary

fintech open banking payments

Plaid valued at $13.4 billion in new funding round

Latest funding round values Plaid significantly above the $5.3 billion that Visa planned to pay in merger deal called off earlier this year.

Financial technology company Plaid raised $425 million in a new funding round that values Plaid significantly above what Visa Inc. planned to pay for the company in a merger deal that was shelved earlier this year.

Plaid’s newest funding round, announced Wednesday, assigns the company a post-money valuation of $13.4 billion, according to a source close to the company. The investment was led by Altimeter Capital, with Silver Lake Partners and Ribbit Capital also participating.

Visa previously intended to acquire Plaid for $5.3 billion, but the two companies called off the merger in January given antitrust pushback from the Department of Justice. While Visa Chief Executive Al Kelly maintained at the time that he believed Visa would have won the lawsuit with the Justice Department over the deal, he said the two companies mutually agreed to shelve the merger instead of pursuing what they expected to be a drawn-out legal battle.

Plaid’s technology enables people to link their bank accounts with fintech services like PayPal Holding Inc.’s  Venmo and Robinhood. The company also has a beta program running for an income-verification product that would make it easier for users to verify income and employment.

The company “is focused on creating a single, integrated platform focused on helping innovators build digital financial products,” it said in a blog post announcing the new funding round. Plaid plans “continued investment in APIs [application programming interface] that help people connect a complete view of their finances, as well as tools and services to support enhanced privacy, personalization, decisioning, and automation.”

Source: MarketWatch

Check out our blog here.

Recommended posts

PCN Pulse

Sardine raises $51.5m, N26 joins Bizum, CashSentinel partners with Budget Insight

Sardine raises $51.5m for fintech fraud platform in a funding round led by Andreessen Horowitz. N26 joins Bizum, becoming the first neobank to incorporate
Payment initiation_BudgetInsight

CashSentinel chooses Budget Insight to integrate payment initiation into its MyPortal Auto solution

Paris/Lausanne, 13 September 2022 – Budget Insight, a leading European player in Open Banking and Open Finance, is now collaborating with CashSentinel, a fintech

But first, cookies

We use cookies to improve your experience and deliver personalized content. By using this website, you agree to our Privacy Policy.
New podcast: An Interview with Tom van Wees and Roderick de Koning, CCO and CEO of Ginger Payments