FinTechInvestmentsMortgage

Fintech company Plaid secures investments from Mastercard and Visa

Top credit card companies invest in fintech unicorn

Plaid, a technology platform that connects various applications with users’ bank accounts and has a growing presence in the mortgage space, raised $250 million last December in its Series C funding round that pegged the company with a reported valuation of $2.65 billion.

Noted venture capitalist Mary Meeker led the funding round, with participation from Andreessen HorowitzIndex Ventures, Norwest Venture Partners, and Coatue Management, along with existing investors Goldman SachsNEA, and Spark Capital.

But now, the company has two new and very notable investors: Mastercard and Visa.

Plaid announced Monday that Mastercard and Visa made “strategic investments” in the company but did not disclose how much those investments were for.

In the mortgage space, Plaid, a 2019 HW Tech100 winner, provides an asset verification program that can be used as part of Fannie Mae’s Day 1 Certainty program.

The company expanded earlier this year when it acquired Quovo, another company that also connects applications to customers’ accounts, although Quovo’s business is focused more on investment and brokerage accounts.

Plaid reportedly paid around $200 million for Quovo.

And now, the company is set to continue expanding with backing from two of the largest credit card companies in the world.

“We have long been inspired by the work these networks did to digitize commerce, and hold this as an example for what we hope to accomplish in financial services. We look forward to collaborating on products that lie at the intersection of commerce and financial services,” Plaid Co-Founder and CEO Zach Perret said in a blog on the company’s site.

“We’re particularly excited about what this means for our customers and for consumers,” Perret continued. “We are well on our way to creating a consumer-first financial ecosystem that will significantly improve the way people manage their financial lives.”

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