Plaid Raises More Money: What Does This Mean for an IPO?
Financial technology innovator Plaid recently announced another round of funding, with JPMorgan Chase and American Express leading the pack. The amount raised was undisclosed, but during its initial Series D funding round in April, the company raised $425 million, bringing its valuation to more than $13 billion, according to published reports. That's far more than the $5.3 billion Visa was ready to pay for Plaid in January 2020, a deal that was ultimately blocked by the Justice Department.
Plaid is at the forefront of the "open banking model," and as traditional financial institutions invest in the fintech, it shows they are accepting the shift toward this new model in finance. Given its valuation growth in the past two years, Plaid will be one of the larger initial public offerings (IPOs) when it finally goes public. So when will that be -- and what do we have to look forward to?
Plaid is a technology provider that lets customers connect their bank accounts to other apps so they can quickly and efficiently transfer money or make payments. Any time you connect your bank account to an app by simply signing into your bank account, you're likely using Plaid's technology. The company charges fees to apps for using its service, so if you were to connect your bank account to Robinhood and transfer money, for instance, Plaid would get a small fee for helping to facilitate the transaction.
Source Fool.com
