Plaid Raises $575 Million In Funding At $6.1 Billion Valuation
Plaid CEO Zach Perret is raising money to cover an upcoming tax bill and to let employees sell some of their Plaid stock.
San Francisco-based Plaid, whose main business is helping fintechs and other companies connect to consumers' bank accounts, is raising $575 million in a deal that values it at $6.1 billion, down more than 50% from the $13.4 billion it reached in 2021. The investment is being led by large asset management firms including Franklin Templeton, Fidelity Management and Research and BlackRock, with venture capital firms NEA and Ribbit also investing.
A spokesperson for the 12-year-old company says most of the proceeds will be used to cover tax liabilities that will come due over the next few years, when employees' restricted stock units (RSUs)—a form of equity compensation where a business promises to grant you stock at a future date–vest and convert into common stock.
Plaid will use a 'small portion' of the $575 million fundraise to buy back stock from employees in a tender offer, letting them cash out a small part of their Plaid stock, according to a spokesperson. After Plaid pays for its coming tax liability and the employee tender offer, it will use whatever is left of the $575 million to help fund its business, though it expects that to be 'a minimal amount.'
Stripe took a similar step in March 2023 with a $6.5 billion tender offer that allowed employees to sell their private shares in the company, and it has done at least two more tender offers since then.
In recent years, Plaid has expanded beyond its core bank-account-linking features into three new lines of business: credit-risk analytics, fraud prevention and pay-by-bank. That has helped reverse the growth slowdown the company saw in 2023, when it expanded just 12%. In 2024, its revenue rose 25% and exceeded $300 million, and its gross profit margin was roughly 80%, according to a person familiar with its business. The company still wasn't profitable on a generally accepted accounting principles (GAAP) basis.
The fintech market has improved notably since it began on a downward trajectory in 2022. In the first quarter of 2025, fintechs raised roughly $10.3 billion in funding globally, according to CB Insights, the highest quarterly total since the first quarter of 2023. Digital bank Chime and buy-now, pay-later giant Klarna are planning to go public over the next few months, but Plaid is unlikely to try to IPO this year. 'Our hope is that we will get there in the next couple years, but no plans for a 2025 IPO,' Plaid CEO Zach Perret told Bloomberg in January. Last month, The Information reported that Plaid was planning a fundraise at a valuation of roughly $6 billion.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
42 minutes ago
- Yahoo
Mitsubishi plans battery swapping tech for electric CVs in Tokyo
Mitsubishi Fuso Truck and Bus (MFTBC), in collaboration with Mitsubishi Motors, Ample, and Yamato Transport, is set to roll out an EV battery swapping initiative in Tokyo, Japan, by September 2025. The plan includes introducing more than 150 battery-swappable commercial electric vehicles (EVs) and creating 14 modular battery swapping stations across the city. This major move towards sustainable transportation follows a smaller pilot in Kyoto last year and will feature MFTBC's eCanter light-duty truck and Mitsubishi Motors' Minicab EV, targeting commercial delivery fleets. Yamato Transport will be the first major customer, focusing on last-mile delivery applications. Ample, a US-based battery swapping company, will provide the technology for the EV platforms and will be responsible for installing and operating the swapping stations. The Tokyo Metropolitan Environment Public Corporation is backing the project through its "Technology Development Support Project for Promoting New Energy", aligning with Japan's climate goals. Japan aims to reduce greenhouse gas emissions by 46% from 2013 levels by 2030 and achieve carbon neutrality by 2050. With the transportation sector responsible for nearly 19% of the country's CO₂ emissions in 2022, commercial fleet electrification is a strategic priority for Japan's decarbonisation efforts. The consortium in Tokyo is targeting battery swapping times of just five minutes, offering a fully automated service where drivers do not need to exit their vehicles. Ample's compact and rapidly deployable stations are a practical solution for high-utilisation fleets in dense urban areas like Tokyo. Future expansions of this initiative may include grid services, such as renewable energy storage, to further reduce greenhouse gas emissions. This initiative builds on previous collaborations, with Yamato Transport pioneering commercial EV battery swapping since 2022 and a successful pilot involving commercial delivery and battery swapping taxis in Kyoto in 2024. "Mitsubishi plans battery swapping tech for electric CVs in Tokyo" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Prime Healthcare cutting 100 jobs across its Illinois facilities, months after acquiring hospitals from Ascension
Prime Healthcare, which bought eight Illinois hospitals earlier this year, is eliminating more than 100 jobs, the hospital system confirmed Monday. Prime made most of the reductions Friday, and will continue cutting other jobs through July. 'As we continue to offer and create opportunities, we are also evaluating alignment with best practices and support from our national and regional teams,' Prime said in a statement. 'Through this process, there is a small number of positions that are duplicated or not aligned with the care model and service line offerings – most of them not directly providing patient care – that will be consolidated.' None of the affected jobs are union positions, according to Prime. Prime hired 13,000 workers from Ascension when it bought the hospitals from that health system, and has created nearly 1,000 new jobs since the acquisition. The job cuts represent less than 1% of the combined 14,000 employees, according to the statement. 'Importantly, these efforts will not affect the quality of care we deliver to the communities we serve and in fact will help expand best practices from across the nation,' Prime said in the statement. 'All decisions made at our Illinois facilities are guided by our mission to improve quality, strengthen care delivery, preserve access in underserved areas and ensure long-term sustainability.' The California-based Prime bought the Illinois hospitals for more than $370 million in March. Six of the hospitals sold to Prime changed from being nonprofit hospitals to for-profit hospitals as part of the sale. Hospitals that were sold include St. Mary's Hospital in Kankakee, Holy Family Medical Center in Des Plaines, Resurrection Medical Center in Chicago, St. Francis Hospital in Evanston, St. Joseph Medical Center in Joliet, St. Joseph Hospital in Elgin, Mercy Medical Center in Aurora and St. Mary of Nazareth Hospital in Chicago. The job cuts are the latest in a string of changes Prime has made since closing the deal, drawing criticism from elected officials and a nurses' union. Prime announced in April that it planned to suspend inpatient pediatric care at St. Joseph Medical Center in Joliet, saying at the time that the unit had been averaging less than one patient a day, while the need for other services such as advanced surgical, neurosurgical and spinal care had grown. The Illinois Nurses Association condemned the move arguing it would hurt the community, which only has one hospital. Also, Mercy Medical Center in Aurora lost its designation in April as a Level II trauma center. Prime also suspended obstetrical services at St. Mary's in Kankakee after the hospital's 'nearly sole obstetrics physician' retired, and because of low demand, Prime has said. Sen. Dick Durbin and Tammy Duckworth sent a letter to Prime's chairman, founder and CEO Dr. Prem Reddy, in May expressing concern about those changes and asking Prime to elaborate on the reasons behind them and its future plans for the hospitals. Prime responded to that letter last week, emphasizing its mission of turning around struggling community hospitals across the country. Prime said that before it bought the hospitals in Illinois they were losing about $200 million a year. Prime said maintaining services with low patient demand is not sustainable, nor good for the quality of care. Prime also told the senators it plans to expand behavioral health care services for seniors at its Illinois facilities. In its statement Monday, Prime said it has started fulfilling a previously stated commitment to invest $250 million across the Illinois hospitals. Prime said those affected by the job cuts are invited to apply for any of the more than 900 open positions across its Illinois facilities. The job cuts were first reported by the Herald News.
Yahoo
an hour ago
- Yahoo
IDOL recovers unpaid wages for workers on Saline County solar project
HENDERSON, Ky. (WEHT) – The Illinois Department of Labor (IDOL) has recovered over $85,000 in unpaid wages. The IDOL has recovered these unpaid wages for 17 workers that were employed on a construction project in Saline County. IDOL also recovered more than $17,000 in penalties from D&D Electric, LLC (D&D). Eggs sold at Walmart, other grocers in 9 states recalled amid salmonella outbreak 'Illinois law requires that employees on publicly funded projects be paid a fair wage for their skilled work,' said Illinois Department of Labor Director Jane Flanagan. 'Making these workers whole reflects IDOL's commitment to enforcing the Prevailing Wage Act and holding employers accountable when they violate workers' rights.' IDOL says it began its investigation of the Harrisburg, Illinois-based contractor in 2024 for its work on a solar panel installation. The department says it determined D&D violated the State's Prevailing Wage Act by allegedly failing to properly classify workers and correctly compensate them for fringe benefits and overtime. IDOL explains the Prevailing Wage Act requires contractors and subcontractors to pay laborers, workers and mechanics employed on public works projects no less than the general prevailing rate of wages, which consists of hourly cash wages plus fringe benefits, for work of similar character in the locality where the work is performed. U.S. Supreme Court to hear Representative Bost's case on mail-in voting IDOl says the Illinois Climate and Equitable Jobs Act (CEJA) ensured that new clean energy construction jobs are also quality high-wage jobs by requiring that contractors pay prevailing wages for workers on projects receiving incentives through the Illinois Power Agency. Officials say if a worker believes they have not been properly compensated for work performed in Illinois, they can file a complaint online or call 312-793-2800 with questions. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
