Plaid announces $425 million raise following failed Visa merger

Plaid, the startup that specializes in connecting fintech firms to banks, has closed a $425 million Series D fundraise.

The news comes after the U.S. Department of Justice kiboshed an attempt by card giant Visa to buy Plaid for $5.3 billion, leading the two firms to abandon their plans in January.

In the months that have followed, Plaid’s valuation has soared. Bloomberg reported last week that this latest capital injection valued startup at around $13 billion.

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A person close to Plaid confirmed for The Block that the Series D raise gives the company a post-money valuation of $13.4 billion.

Investment firms Altimeter Capital and Silver Lake, both new investors in the startup, co-led the round. Ribbit Capital, another new investor, also participated, alongside existing backers such as Andreessen Horowitz, Index Ventures, Kleiner Perkins, New Enterprise Associates, Spark Capital and Thrive Capital.

The proceeds of the fundraise will go towards further geographic expansion in the United Kingdom and Europe, where the company has been live since 2019. Plaid is also hoping to expand its payment capabilities to “provide a bridge” between Europe and the U.S. to assist fintech firms with global expansion efforts, according to a press release.

Update: Following the publication of this story, Plaid told The Block that it had in fact raised $425 million, not the $430 million that it had initially announced in a press release. The story has been updated to reflect that.