Plaid, a fintech company that enables connections between bank accounts and financial applications, is working on a deal to allow early-stage investors and employees to sell their stock to Goldman Sachs, according to a report by Bloomberg. The tender offer, which is expected to value the company lower than its previous financing round, could see Goldman Sachs pay between $300 million and $400 million for existing shares.

This development comes as a significant shift in the fintech landscape, which has been impacted by higher interest rates leading to lower valuations for many startups in the sector. Plaid's previous financing round in April 2021 saw the company raise $425 million in a Series D round, led by Altimeter Capital, at a post-money valuation of $13.4 billion. However, the current deal with Goldman Sachs is expected to value the company lower, reflecting the changed market conditions.

Plaid, which initially focused on fintech clients, has since expanded its customer base to include established financial companies like H&R Block, Western Union, and Citi. The company's revenue has shown significant growth, with a more than 25% increase in 2024, as reported by Bloomberg last month. Despite this growth, the company has not responded to requests for comment on the reported deal with Goldman Sachs.

The tender offer, if successful, would provide an exit opportunity for early-stage investors and employees who have been holding onto their shares. It would also mark a significant investment by Goldman Sachs in the fintech sector, which has been increasingly attractive to traditional financial institutions. The deal's implications will be closely watched by the fintech community, as it could set a precedent for similar transactions in the future.

The reported deal also highlights the challenges faced by fintech startups in the current market environment. With higher interest rates and lower valuations, many startups are struggling to raise capital or achieve profitable exits. Plaid's deal with Goldman Sachs, if successful, could provide a much-needed lifeline for the company and its stakeholders.

As the fintech landscape continues to evolve, the outcome of Plaid's deal with Goldman Sachs will be closely monitored by industry observers. The transaction's implications will extend beyond Plaid, influencing the broader fintech ecosystem and shaping the future of financial technology innovation.