Plaid, the financial technology company connecting bank accounts to financial apps, has raised $575 million. The round values the San Francisco-based firm at $6.1 billion, according to the company. This is a steep decline from its $13.4 billion valuation during the 2021 funding boom. However, it’s still higher than the $5.3 billion Visa once offered before regulators blocked the deal.
Plaid attributed the drop in value to a broader market correction. A company spokesperson said it reflects “the contraction of multiples across the market,” driven by rising interest rates.
IPO Plans on Hold as Plaid Prioritizes Internal Stability
Despite previous signs of preparing for an IPO, Plaid says it won’t go public in 2025. The company still views going public as a long-term goal but is not committing to a timeline.
Last October, Plaid brought on former Expedia executive Eric Hart as CFO. His appointment sparked speculation about an IPO. Still, Plaid now says it is focused on strengthening operations and supporting employees.
“We’re in a strong position and optimistic about what’s ahead,” a spokesperson stated.
New Funding Round Targets Employee Equity and Liquidity
This new capital raise is not a traditional Series E. Instead, Plaid issued common stock directly, which means the funds go straight to the company. Franklin Templeton led the round, with backing from new investors like Fidelity Management and BlackRock. Long-time investors NEA and Ribbit Capital also joined.
The funding is mainly to handle tax liabilities tied to employee stock. Many of Plaid’s RSUs (restricted stock units) are set to expire in the coming years. The company will use part of the capital to convert those into shares and cover related tax withholdings. A small portion will allow employees to sell shares in a tender offer for added liquidity.
“We raised the capital to handle RSU expirations. There’s a small tender component, but that’s not the full picture,” said the spokesperson.
Plaid Sees Record Growth and Expands Product Offerings
According to CEO Zach Perret, 2024 was a banner year for Plaid. He said the company saw record revenue, regained positive operating margins, and added more enterprise customers than ever before.
Although exact figures weren’t disclosed, Perret shared that revenue grew over 25% in 2024. He also noted that new product lines now make up more than 20% of annual recurring revenue (ARR) and are growing by 93% annually.
This multi-product strategy has helped Plaid serve a broader set of customers. Originally focused on fintech apps, the company now works with larger enterprises and financial institutions. According to President Jen Taylor, growth in these traditional sectors is now outpacing its core fintech business.
Key Clients and Global Presence Continue to Expand
Plaid now supports major brands like Citi, Robinhood, Zillow, H&R Block, GoFundMe, and Rocket Mortgage. These companies rely on Plaid’s tools to power services like payments, credit reporting, fraud prevention, and identity verification.
“Our mission is to simplify the financial system through software,” Perret wrote. “We power many of the most recognized financial brands, including SoFi, Chime, Affirm, and Robinhood.”
Founded in 2012, Plaid has now raised around $1.3 billion in total funding. The company employs 1,200 people across the U.S., Canada, the U.K., and the EU.
While public markets remain a future ambition, Plaid is currently focused on building out its platform, supporting its team, and sustaining profitable growth.
