
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
15 minutes ago
- Yahoo
Altman-Backed Coco Robotics Raises $80 Million for Delivery Bots
Coco Robotics, an urban delivery startup using small autonomous robots, has secured $80 million in new funding from OpenAI CEO Sam Altman and other investors, Bloomberg reported Wednesday. The financing round was led by venture capital firm SNR, with participation from Pelion Venture Partners, Offline Ventures, and Max Altman, Sam's brother. The latest investment brings Coco's total raised capital to over $110 million. The company did not disclose a new valuation. Warning! GuruFocus has detected 7 Warning Sign with DASH. Founded in 2020 and formally known as Cyan Robotics Inc., the Santa Monica-based startup deploys about 1,300 cooler-sized electric robots across cities including Miami, Chicago, Los Angeles and Helsinki. The devices deliver food and small packages and are integrated into logistics platforms from Uber Technologies Inc. (UBER) and DoorDash Inc. (DASH, Financials). Coco also works directly with merchants and recently deepened its partnership with OpenAI. Under a March agreement, the company uses OpenAI's language and vision models alongside its own software stack to help its robots navigate obstacles and make real-time decisions. The two firms also share data from delivery routes to train AI systems. However, CEO Zach Rash said Sam Altman was not involved in structuring that collaboration. Coco is one of several startups racing to bring robotics to last-mile delivery logistics, a segment where cost-cutting and speed remain key challenges. Despite the sector's volatility, investors are betting that Coco's full-stack software and early commercial traction can differentiate it in a growing market. This article first appeared on GuruFocus.
Yahoo
20 minutes ago
- Yahoo
Home Depot Targeted in Los Angeles Immigration Raids
The Home Depot, Inc. (NYSE:HD) is one of the best Dow stocks to invest in. Recently, the company has become a focal point in the recent federal immigration raids and the protests that followed in Los Angeles. On June 6, federal agents targeted a Home Depot in the Westlake area, along with other sites like Ambiance Apparel in downtown L.A., resulting in dozens of arrests. The arrests near The Home Depot, Inc. (NYSE:HD) involved day laborers hired by the store's customers, such as homeowners and contractors who often rely on undocumented workers for home repairs and construction. A The Home Depot, Inc. (NYSE:HD) spokesperson confirmed that the company was not informed about the raids beforehand and was not involved in the enforcement actions. The Atlanta-based retailer now faces challenges as its stores have become common targets for raids, which may discourage customers. On June 9, Home Depot's shares fell 0.6%, closing at $36.20. While we acknowledge the potential of HD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Sign in to access your portfolio


New York Post
24 minutes ago
- New York Post
Popular fast-food chain explores potential $1.5B sale as demand for fried chicken booms: report
Popular Southern-based fast-food chain Bojangles is exploring a potential sale of its business as demand for fried chicken heats up, according to a report on Wednesday. The company could fetch more than $1.5 billion – three times what it sold for in a 2019 buyout, sources familiar with the matter told the Wall Street Journal. The chain — known for its chicken, biscuits and cavity-inducing sweet tea — would likely draw interest from restaurant operators and private-equity investors, though it could still decide against the sale, sources added. 3 Fried-chicken chain Bojangles is reportedly exploring a potential sale of its business. Alamy Stock Photo Bojangles did not immediately respond to The Post's request for comment. Private-equity firms Durational Capital Management and TJC took Bojangles private in an all-cash deal in 2019 that valued the company at more than $590 million. Bojangles, founded in Charlotte, NC, in 1977, boasts about 800 locations mostly across the southern US, with more than 100 restaurants in Georgia alone, though it has started to expand to the northeast. It opened its first New Jersey location in April and its second Pennsylvania restaurant in 2022. The company is likely looking to take advantage of an advantageous market as fried chicken restaurants continue to outperform competitors. That's largely thanks to chicken's versatility, according to R.J. Hottovy, head of analytical research at 'This adaptability has enabled a number of brands to stand out by offering a wide range of customizable spice levels, sauces and sides that appeal to a broader customer base,' Hottovy told The Post. 3 A Bojangles meal including fried chicken, biscuits, sweet tea and sides. Total sales at US chain restaurants grew 3% last year, according to Technomic. Sales at burger chains rose just 1% – while chicken restaurants largely outperformed with 9% growth. Sales at fast-casual chicken chains like Raising Cane's and Wingstop increased 24% compared to the year before, according to Technomic. Visits to restaurants like Raising Cane's, Dave's Hot Chicken, Super Chix and Huey Magoo's Chicken Tenders far outpaced overall visits to fast-casual chains in the first quarter of 2025, according to data. The growth was driven in part by expansions as hot demand for chicken allowed restaurants to open new locations. 3 Dave's Hot Chicken recently announced a sale to Roark Capital that values the company at $1 billion. AP Dave's Hot Chicken – which recently clinched a $1 billion deal to sell to Subway owner Roark Capital – saw the most significant year-over-year visit growth of 60% in the first quarter, according to That followed visit growth of 67.2% in the fourth quarter of 2024. Other fast-food chains have tried to hop on the chicken trend. McDonald's added its McCrispy Strips to the permanent menu this spring, while Taco Bell re-launched its chicken nuggets. Several other restaurant mergers and acquisitions have been reached over the past few months. Blackstone took a majority stake in Jersey Mike's Subs that valued the company at $8 billion, while Sycamore Partners bought acai bowl chain Playa Bowls. The terms of the Playa Bowls deal have not been announced.