The digital finance platform Plaid reported that it raised $575 million in new funding.
Information about the new financing was published on the mentioned brand’s blog on Thursday, April 3. The money was received after a year during which the company recorded a significant expansion of its product suite.
The firm’s co-founder and chief executive officer Zach Perrett stated that Plaid evolved from a business focused only on bank linking into a suite of data analytics products that are essential for financial services and adjacent markets. According to him, whether it’s signing up new users, fighting fraud, enabling bank payments, or making underwriting decisions, the company’s network is core to the way that its customers run their businesses and consumers run their financial lives.
Plaid has expanded its customer base to include major enterprise players such as Citi, H&R Block, Invitation Homes, and Rocket.
The company is currently well on track. In the United States, there is a practice of large-scale Plaid’s usage. The company confirmed information that more than half of Americans leveraged its services last year. This information was originally published by the media with reference to insiders in January.
Zach Perrett also noted some long-term trends that Plaid is tracking. In this case, it implies the ongoing digitalization of financial services and the rise of artificial intelligence. According to him, the era of machine intelligence is coming, which is transforming every aspect of how banks operate internally, and how consumers interact with these solutions and their finances in general.
Plaid plans to spend the received funding to address employee tax withholding obligations tied to the conversion of expiring restricted stock units to shares, and to offer some liquidity to its current team.
As we have reported earlier, PNC and Plaid Collaborate on Secure Sharing of Banking Data.
