Plaid Raises $575 Million at $6.1 Billion Valuation
Plaid, the fintech infrastructure company that powers connectivity between consumer bank accounts and financial apps, has confirmed it raised approximately $575 million through a common stock sale at a $6.1 billion post-money valuation. The deal, led by Franklin Templeton and joined by heavyweights including Fidelity, BlackRock, NEA, and Ribbit Capital, marks a significant valuation reset from the company’s 2021 peak of $13.4 billion.
Despite the drop, Plaid's current valuation remains above the $5.3 billion figure Visa was set to pay for the company in a high-profile acquisition that was scrapped in early 2021 due to antitrust concerns. A company spokesperson acknowledged the downturn, attributing it to the broader market contraction, particularly in tech multiples, that followed the 2021 funding frenzy.
This new capital is not part of a Series E round, but rather a strategic sale of common stock. Plaid will use the proceeds primarily to cover tax obligations tied to the conversion of expiring restricted stock units (RSUs) and to offer some liquidity to employees through a tender offer. While the company did not detail the exact capital allocation, the majority of the raise is aimed at addressing RSU-related liabilities.
CEO and co-founder Zach Perret described 2024 as a “record-setting year,” citing over 25% revenue growth, a return to positive operating margins, and rapid expansion into new products and markets. New offerings now make up over 20% of Plaid’s annual recurring revenue and are growing at 93% annually, according to a shareholder letter.
Founded in 2012, Plaid began by enabling connections between bank accounts and fintech apps. Today, it’s evolved into a broader platform offering services in lending, payments, identity verification, credit reporting, and fraud prevention. This strategic pivot toward enterprise customers is paying off, with growing traction among traditional financial institutions.
Notable clients include Citi, Robinhood, Zillow, Rocket, GoFundMe, and H&R Block, alongside fintech darlings like SoFi, Chime, and Affirm. The company now employs 1,200 people across North America and Europe and continues to position itself as a critical infrastructure layer for modern finance.
While Plaid has no immediate plans to go public in 2025, the company continues to move in that direction. Last year’s appointment of former Expedia CFO Eric Hart signaled a growing focus on financial discipline and IPO readiness, even without a fixed timeline.
“Our goal is to build software that makes the financial system easier and better for everyone,” Perret wrote. As the fintech sector matures and adapts to a new funding environment, Plaid appears determined to play the long game—leaning on product innovation, enterprise partnerships, and operational resilience to fuel its next phase of growth.
