Fintech company Plaid raised $ 425 million in a new round of funding that values Plaid significantly above what Visa Inc. planned to pay for the company in a merger agreement that was shelved earlier this year. Plaid’s most recent funding round, announced Wednesday, assigns the company an after-money valuation of $ 13.4 billion, according to a source close to the company. The investment was led by Altimeter Capital, with the participation of Silver Lake Partners and Ribbit Capital.
Visa V, + 0.18% previously intended to acquire Plaid for $ 5.3 billion, but the two companies canceled the merger in January due to antitrust rejection from the Justice Department. While Visa Chief Executive Al Kelly maintained at the time that he believed Visa would have won the lawsuit with the Justice Department over the deal, he said the two companies mutually agreed to shelve the merger rather than pursue what they hoped would. it was a lengthy process. Legal battle. See more: Visa and Plaid Cancel $ 5.3 Billion Merger After Department of Justice Objection Plaid’s technology allows people to link their bank accounts to financial technology services like PayPal Holding Inc.’s PYPL, + 0.71% from Venmo and Robinhood. The company also has a beta program running for an income verification product that would make it easier for users to verify income and employment. The company “is focused on creating a single, integrated platform focused on helping innovators build digital financial products,” he said in a blog post announcing the new funding round. Plaid plans “continued investment in API [application programming interface] that help people connect a complete view of their finances, as well as tools and services to support greater privacy, personalization, decision-making and automation. ”