Plaid, a San Francisco, California-based fintech company, has garnered $575m in a funding round spearheaded by asset manager Franklin Templeton.
The round also saw participation from Fidelity Management and Research, alongside existing investors such as NEA and Ribbit Capital.
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This capital injection will be primarily utilised to manage employee tax obligations related to RSUs and provide liquidity for the current team, Plaid CEO Zach Perret said in a blog post.
The company claims to have experienced “substantial growth”, expanding its product suite and witnessing a considerable increase in enterprises using Plaid’s services.
The growth has led to a “record-setting” year in revenue, a return to positive operating margins, and an expansion in the companies and markets Plaid serves.
Currently, over one in two Americans with a bank account have engaged with Plaid’s network.
Founded in 2013, Plaid operates a data network that partners with various entities, including Venmo, SoFi, and Betterment, several Fortune 500 companies, and numerous banks.
This network enables consumers to link their financial accounts with the apps and services they prefer, covering over 12,000 financial institutions across the US, Canada, the UK, and Europe.
In an annual investor letter, Perret highlighted 2024 as a pivotal year.
The company has introduced new business lines, including Alternative Credit Data, Anti-Fraud, and Bank Payments, which now account for over 20% of the annual recurring revenue (ARR), growing at a rate of 93% annually.
Plaid has also made inroads into the enterprise sector, securing customers such as Citi and Invitation Homes.
As the company looks towards 2025, it plans to accelerate investment in these new business lines to meet market demand. There is a particular focus on enhancing data science, machine learning, and AI capabilities to bolster data analytics across Plaid’s solutions.
In January 2024, Plaid partnered with PortX, combining its data connectivity capabilities with PortX’s expertise in digital core banking integration.
