Plaid, a fintech company linking bank accounts to financial applications, is collaborating with Goldman Sachs to execute a tender offer, allowing early investors and employees to sell shares. The expected raise of $300 to $400 million will likely establish a lower valuation than its last $425 million funding round in 2021. Increased interest rates have adversely impacted valuations in the fintech sector. Despite the challenges, Plaid has diversified its client base, which now includes various established firms, and reported revenue growth exceeding 25% in 2024.
Plaid, a company that connects bank accounts to financial applications, is working with Goldman Sachs on a deal to allow early-stage investors and employees to sell existing shares.
The tender offer will likely value the company lower than its previous financing round, as it raised a $425 million Series D at a valuation of $13.4 billion in April 2021.
Higher interest rates have led to lower valuations for many fintech startups, impacting Plaid's current market approach.
While Plaid initially focused on fintech clients, its customer base now includes established financial companies like H&R Block, Western Union, and Citi.
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