Plaid, a leading fintech company that connects bank accounts to financial applications, is reportedly working with Goldman Sachs on a deal to allow early-stage investors and employees to sell existing shares, raising between $300 million and $400 million. According to sources cited by Bloomberg, the tender offer will likely value the company lower than its previous financing round.

This development comes after Plaid raised a $425 million Series D funding round in April 2021, led by Altimeter Capital, which valued the company at a post-money valuation of $13.4 billion. However, since then, the fintech industry has experienced a shift, with higher interest rates leading to lower valuations for many startups in the space.

Despite this, Plaid has continued to grow, expanding its customer base beyond fintech clients to include established financial companies such as H&R Block, Western Union, and Citi. The company's revenue has also seen significant growth, increasing by more than 25% in 2024, as reported by Bloomberg last month.

The partnership with Goldman Sachs marks a significant move for Plaid, allowing early investors and employees to realize some value from their shares. While the company did not immediately respond to a request for comment, the deal is expected to provide liquidity to these stakeholders.

The tender offer is also seen as a strategic move by Plaid to adjust to the changing fintech landscape. With valuations under pressure, the company is taking proactive steps to adapt to the new reality. This deal may also set a precedent for other fintech startups facing similar valuation challenges.

It's worth noting that an earlier report incorrectly stated that Goldman Sachs would be buying the shares for $300 million to $400 million. The corrected information reveals that the tender offer will raise between $300 million and $400 million, valuing the company lower than its previous financing round.

As the fintech industry continues to evolve, Plaid's partnership with Goldman Sachs serves as a reminder of the importance of adaptability and strategic decision-making. With this deal, Plaid is taking steps to ensure its continued growth and success, even in a challenging market environment.

The implications of this deal will be closely watched by the fintech community, as it may have broader implications for the industry as a whole. As the landscape continues to shift, companies like Plaid will need to remain agile and innovative to stay ahead of the curve.