Plaid announced it raised $575 million in a new funding round, valuing the fintech startup at $6 billion, a significant decline from its $13.4 billion valuation in 2021. The round was led by new investors including Franklin Templeton, Fidelity, and BlackRock, along with existing NEA and Ribbit Capital supporters. CEO Zach Perret stated that despite the lower valuation, Plaid achieved record revenue and positive operating margins, although specific financial details were not disclosed. He attributed the reduced valuation to broader market conditions rather than the company’s performance. The fresh funding will primarily allow employees to cash out restricted stock units that are set to expire, with a portion of the funds enabling an employee tender offer.
Plaid plans to remain private for now, with an initial public offering considered in the coming years once internal preparations are complete. The company’s decision reflects a broader trend among late-stage startups like Ramp, DataBricks, and Stripe, which are opting for secondary financings to provide employee liquidity amid public market uncertainty. Plaid, founded a decade ago, has grown beyond linking bank accounts to finance apps, expanding into bill payments, cybersecurity, and data analytics. Cybersecurity has become a major focus for Plaid, as financial fraud driven by artificial intelligence rises sharply each year.
