Plaid is a platform that integrates bank accounts with various financial applications. In other words, Plaid facilitates the exchange of data between users' bank accounts and different apps, allowing users to access their financial information more easily and securely. To expand its infrastructure and attract more customers, the company is offering early-stage investors and employees the opportunity to sell their existing shares. This sale is expected to raise between $300 million and $400 million. According to Bloomberg, one of the world's largest investment banks, Goldman Sachs, is involved in this transaction. Goldman Sachs is a renowned and influential investment bank that primarily provides financial services to large corporations and governments worldwide.
Such transactions are called tender offers, and the company's valuation in this case is expected to be lower than in its previous funding round. Plaid raised $425 million in a Series D round in April 2021, led by Altimeter Capital, with a valuation of $13.4 billion at that time. However, the rise in interest rates has caused valuations of fintech startups to decrease.
Plaid has not yet commented on the matter.
The company initially worked exclusively with fintech clients, but now major financial institutions like H&R Block, Western Union, and Citi are among its customers. Plaid's revenue increased by more than 25% in 2024.
