Fintech Plaid raises $575M at a $6.1B valuation, says it will not go public in 2025

Plaid, which connects bank accounts to financial applications, has sold about $575 million worth of common stock at a $6.1 billion post-money valuation, the fintech company confirmed to TechCrunch. The valuation is about less than half of the $13.4 billion that San Francisco-based Plaid was valued at when it raised a $425 million Series D in April 2021 in a round led by Altimeter Capital. A spokesperson acknowledged the decrease, saying it was “simply a reflection of the contraction of multiples across the market.” Indeed, higher interest rates have led to lower valuations for many startups that last raised at the top of the high cycle in 2021. Still, Plaid’s new valuation is about 15% higher than the $5.3 billion Visa was going to pay for the company before that acquisition deal fell apart in January of 2021 due to regulatory concerns. Plaid will not go public in 2025 but it is a milestone the company continues “to track towards,” according to the spokesperson. In October 2023, Pl ... Read full article.