Financial-Data Firm MX Quadruples Its Valuation to $1.9 Billion

(Bloomberg) -- MX Technologies Inc., one of the largest providers of consumer financial data, said its valuation has quadrupled in the last year to $1.9 billion after raising $300 million from venture capital firms.

The latest round was led by TPG Growth along with participation from other investors including Point72 Ventures and Regions Financial, the Lehi, Utah-based firm said Wednesday in a statement. The company plans to use the proceeds to invest “heavily” in its engineering and product teams as well as marketing and sales, Chief Executive Officer Ryan Caldwell said in an interview.

MX works with financial behemoths and upstarts alike, which pay to use its technology to obtain and enhance consumer-banking data. The firm says it now works with more than 2,000 banks and startups, giving it access to financial data for more than 200 million consumers.

“The pandemic essentially had the world accelerate its shift to digital -- we had all our partners lean in more and say we know we need to transition faster than we already were to a digital environment,” Caldwell said. “Once the pandemic started, no one wanted to accept cash. No one wanted to hand you a check. More and more people didn’t want to go into branches. They wanted the mobile app to provide that.”

Financial-data providers have received increased attention after Visa Inc. announced plans a year ago to purchase Plaid for $5.3 billion, though that deal was abandoned Tuesday in the face of a legal challenge from the U.S. Department of Justice. Mastercard Inc. agreed in June to pay $825 million for Finicity, another rival of MX.

“There’s a good chance that an IPO is in our future but we could raise privately again if we chose to,” Caldwell said, noting the company is profitable.

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