Plaid raises $575m in funding led by Franklin Templeton

By Gloria Methri

San Francisco-based FinTech Plaid has secured $575 million in a funding round led by Franklin Templeton, with participation from Fidelity Management and Research, as well as existing investors NEA and Ribbit Capital. The funding will primarily be used to cover employee tax withholding obligations related to the conversion of expiring RSUs to shares and provide liquidity to its team members.

The latest financing follows a strong growth phase for Plaid, which saw an expansion in its product offerings and increased enterprise adoption. The company reported record revenue in the past year and returned to positive operating margins. Currently, more than half of Americans have used Plaid’s platform to connect their financial accounts.

Plaid is a FinTech company that acts as a data network and payments platform. It enables applications to connect with users’ bank accounts, facilitates transactions, and provides data for various financial services and apps.

Plaid, which initially focused on bank account linking, has since expanded into financial data analytics, fraud prevention, bank payments, and credit underwriting solutions. The company continues to strengthen its role in financial services as it scales its network and broadens its market reach.

The funding round does not signal an immediate move toward a public listing, as Plaid has confirmed that it will not go public in 2025. The company remains focused on developing its technology and growing its platform amid the evolving fintech landscape.