Plaid Raises $300M - $400M with Goldman Sachs

Plaid Facilitates Share Sales with Goldman Sachs

Plaid, the financial technology firm specializing in connecting bank accounts to various applications, is collaborating with Goldman Sachs to enable early investors and employees to liquidate their existing shares.

Details of the Transaction

According to sources cited by Bloomberg, this transaction is projected to generate between $300 million and $400 million. These types of transactions, where a company offers to buy back shares from investors, are commonly referred to as tender offers.

It is anticipated that the valuation assigned to Plaid during this tender offer will be less than that of its most recent funding round.

Previous Funding and Market Conditions

In April 2021, Plaid secured $425 million in Series D funding, achieving a post-money valuation of $13.4 billion. This funding round was spearheaded by Altimeter Capital.

However, the subsequent rise in interest rates has generally resulted in decreased valuations across the fintech startup landscape.

Company Response and Growth

A request for comment directed to Plaid has not yet received a response.

Initially concentrating on fintech clients, Plaid has broadened its reach to encompass well-established financial institutions.

Expanding Client Base and Revenue

Notable clients now include companies such as H&R Block, Western Union, and Citi.

Bloomberg reported last month that Plaid experienced revenue growth exceeding 25% in 2024.

Correction

A previous iteration of this report incorrectly stated that Goldman Sachs would be purchasing the shares for a value between $300 million and $400 million. The current arrangement facilitates a sale *by* existing shareholders.