Plaid raises $425 million in round valuing it at $13.4 billion
07/04/2021 12:00
By Anna Irrera
LONDON, April 7 (Reuters) - Financial technology company
Plaid said on Wednesday that it has raised $425 million in
funding in a round led by Altimeter Capital with participation
from Silver Lake, Ribbit Capital and existing backers.
The investment values the San Francisco-based company at
$13.4 billion, according to a source familiar with the deal.
Plaid will use the cash injection to grow its platform,
investing in infrastructure, payments capabilities and global
expansion, said Keith Grose, Plaid's UK head.
The funding round comes a few months after Plaid and card
provider Visa Inc V.N called off a planned $5.3 billion merger
following a U.S. government lawsuit aimed at stopping the
proposed transaction on antitrust grounds. The deal, which was
proposed in January 2020, was scrapped to avoid protracted
litigation. urn:newsml:reuters.com:*:nL4N2JN3W1
Plaid develops technology that enables consumers to link
their bank accounts to share data and initiate payments with
third-party apps. The company is a market leader in the United
States, with clients including some of the country's most
well-known fintech firms, such as Coinbase, PayPal Holding Inc's
Venmo and Betterment. It has recently started expanding into
Europe.
The company says it has seen demand for its technology boom
over the past year, as use of digital financial services grew
because of global COVID-19 lockdowns.
"This year, we've gained significant traction in the UK and
Europe, adding major UK fintech companies like Curve and Atom to
our client roster," Grose said in an interview. "However, Plaid
still has work to do, particularly in Europe."
The aims to help European companies expand to the United
States and vice versa, Grose said.
(Reporting by Anna Irrera; editing by Emelia Sithole-Matarise)
((Anna.Irrera@thomsonreuters.com; +1 646 223 4005 ;))