Plaid raised $575 million in a down round valuing the company at $6.1 billion, which is less than half its 2021 valuation.
The funding will support employee restricted stock units tax obligations and provide internal liquidity.
Plaid’s delayed IPO likely reflects US open banking uncertainty, as the CFPB finalizes its data access rule. Waiting for regulatory clarity and consumer awareness could position Plaid for a stronger public debut down the road.
Financial data network Plaid announced it has brought in $575 million in a round led by new investor Franklin Templeton, with existing investors NEA and Ribbit Capital, as well as new investors BlackRock and Fidelity, also contributing.
The Venture Round is a sale of common stock; Plaid has directly issued the new shares to raise capital. In a company blog post announcement, Plaid CEO and Co-Founder Zach Perret said that the funds will be used “to address employee tax withholding obligations related to the conversion of expiring restricted stock units (RSUs) to shares, and to offer some liquidity to our current team.”
While today’s funds increase Plaid’s total funding to $1.3 billion, the round revealed a decreased valuation for the California-based fintech. Once valued at $13.4 billion during fintech’s brief hype days of 2021, Plaid’s valuation is currently less than half that, at $6.1 billion.
In explaining the significant gap in valuation to the Financial Times, Perret said, “In 2025, tech multiples have massively compressed between the time that we raised last and today. What I will say is that the fundamentals of the business underneath are dramatically stronger than they were in 2021. Revenue is much higher.”
Plaid’s $575 million comes at a time of growth for the company. Not only did the fintech expand its product suite, but it also saw an increase in organizations building with its account connection tools. In 2024, Plaid boasted positive operating margins, saw a revenue increase of more than 25%, and experienced an increase in both the number companies and markets it serves. As a result, more than 1 in 2 Americans have used Plaid.
If you are wondering when Plaid plans to IPO, you’re not alone. A company spokesperson told TechCrunch that Plaid will not go public this year, but it plans to continue tracking towards a public listing. “An IPO is certainly a part of the longer-term plan. We have not attached a specific timeline to it,” Perret told the Financial Times. “As I’ve said in the past, it will not be this year.”
Plaid’s decision to hold off on an IPO may also be a strategic move given the evolving state of open banking in the US. Unlike regions such as the UK and EU, where open banking is well-established and governed by clear regulatory frameworks such as PSD2, the US market remains in flux. The Consumer Financial Protection Bureau (CFPB) is currently working toward finalizing its proposed Personal Financial Data Rights rule under Section 1033 of the Dodd-Frank Act, but the lack of formalized standards has created uncertainty for data aggregators like Plaid.
By delaying its public debut, Plaid may be seeking to ride out regulatory headwinds and position itself on more solid ground once clearer guidelines are in place. In addition to regulatory clarity, Plaid may also benefit from a recognition and understanding from mainstream consumers, many of whom have never heard the term “open banking.” Once regulations go into effect, banks will slowly begin in educate consumers on the benefits of open banking, and the concept of the value that Plaid brings will come to light. This regulatory clarity, combined with consumer understanding, could improve investor confidence and support a stronger valuation when the company ultimately decides to go public.
Image courtesy David Clarke via Unsplash
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