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Fintech firm Plaid announces $425 million funding round

April 7, 2021. Summarized by summa-bot.

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Zach Perret, chief executive officer and co-founder of Plaid Technologies Inc., speaks during the Silicon Slopes Tech Summit in Salt Lake City, Utah, U.S., on Friday, Jan. 31, 2020. The summit brings together the leading minds in the tech industry for two-days of keynote speakers, breakout sessions, and networking opportunities. Photographer: George Frey/Bloomberg

Financial technology firm Plaid on Wednesday announced a $425 million Series D funding round, more than doubling the total amount the company has raised since its 2012 founding.

New York (CNN Business)Financial technology firm Plaid on Wednesday announced a $425 million Series D funding round, more than doubling the total amount the company has raised since its 2012 founding.

The new funding pushes Plaid's valuation to $13. 4 billion, according to a source close to the company.

Plaid makes the digital infrastructure linking financial data from people's bank accounts to the apps they use to manage their money — such as Venmo, Coinbase and Expensify.

Covid-19 caused a massive increase in demand for digital financial services, likely making Plaid's technology more valuable.

During the pandemic, consumers have used digital tools for everything from managing their bank accounts to buying stocks, all of which increased usage of services built on Plaid's technology.

Plaid CEO Zach Perret told CNN Business in September that fintech firms that it works with logged a 44% jump in new users from March to May last year, compared to the same period in 2019.

Plaid's technology connects information from 11,000 banks and financial institutions to more than 4,500 fintech customers, including PayPal (PYPL), Robinhood, Google (GOOGL) and Microsoft (MSFT), according to the company.

The new funds will allow Plaid to invest in expanding its services, with the goal of creating "a single, integrated platform focused on helping developers build all aspects of their digital financial products," Perret said in the post.

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