Plaid, once a startup and now a fintech disruptor valued at $13.4B, is reportedly negotiating a tender offer of $300–400 million with Goldman Sachs (an early investor from the company’s $44M Series B round in 2016). This transaction will allow early investors and employees to liquidate some holdings while bringing fresh capital into the company.
The tender offer’s valuation is expected to be lower than Plaid’s previous financing round. In April 2021, the company raised $425 million in its Series D round at a $13.4 billion valuation. This potential decrease reflects the broader decline in fintech valuations since 2022.
While the Goldman Sachs deal could position Plaid for a potential IPO, the company’s current stance is clear: no immediate plans to go public. CEO Zach Perret, who had previously shown interest in an IPO, confirmed in March 2024 that the company would not go public that year. In February 2025, he further clarified that a market debut is not planned for 2025.
Behind Plaid: bridging the gap between startups and traditional banks
Founded in 2013 by Zach Perret and William Hockey, former consultants at Bain & Co.’s Atlanta office, Plaid has transformed how financial applications connect with users’ bank accounts. What began as an attempt to build a consumer financial planning app pivoted when they encountered difficulties connecting to financial institutions. This challenge inspired them to create an API simplifying bank account connections for fintech apps.
The founders initially faced steep odds, receiving rejections from 70 investors. Their breakthrough came when they won the 2013 TechCrunch Disrupt hackathon in Manhattan with Rambler, an app that mapped consumers’ banking activity. This victory laid the foundation for Plaid.
Since then, Plaid’s growth has been remarkable. Starting with a $2.8M seed round led by Spark Capital in 2013, the company progressed to a $425M Series D round led by JP Morgan and Amex Ventures. Along the way, they attracted prestigious investors, including Altimeter Capital, Silver Lake, Ribbit Capital, Andreessen Horowitz, and Index Ventures.
Another milestone in Plaid’s journey was the attempted acquisition by Visa in January 2020 for $5.3 billion. This move was regarded as Visa’s strategy to enhance its presence in the fintech sector. However, the deal encountered regulatory challenges, with the U.S. Department of Justice filing an antitrust lawsuit to block the acquisition. In January 2021, Visa and Plaid mutually agreed to terminate the merger agreement due to the prolonged legal issues battle.
Despite the failed acquisition, Plaid continued to thrive as an independent company. Today, Plaid serves over 8,000 customers, including Venmo, Robinhood, Coinbase, Betterment and Acornsm, H&R Block, Western Union, and Citi. Over 50% of new deals since 2022 have come from outside traditional consumer fintech. As of 2025, Plaid’s technology is used by roughly half of all Americans with bank accounts, reflecting its widespread adoption and contributing to its 25% revenue increase in 2024.
The “plumbing” of the fintech industry
Plaid’s core technology is an API-based platform that connects financial institutions with fintech applications. The platform enables secure, seamless access to financial data, allowing applications to link to users’ bank accounts and other financial information. Its key features include real-time access to financial data, integration with over 12,000 financial institutions, secure data transfer, and developer-friendly APIs.
Compared to competitors – MX Technologies, Finicity, Envestnet, TrueLayer, and Akoya – Plaid’s extensive network of over 12,000 financial institutions provides superior coverage and accessibility. The company employs robust security measures, including Transport Layer Security (TLS), Advanced Encryption Standard (AES 256), and multifactor authentication.
Plaid’s user-friendly APIs make it simple for developers to integrate the technology into their applications. The platform’s ability to provide instant access to financial information helps users and businesses make quick, informed decisions.
The growth phase is around the clock
Plaid’s expansion beyond traditional consumer fintech and strong revenue growth point to a promising future. While an IPO isn’t planned for 2025, the company’s evolving strategy and potential Goldman Sachs deal suggest careful preparation for its next growth phase.
As the fintech sector expands, Plaid’s position as the industry’s “plumbing” makes it well-positioned to capture future opportunities, whether as a private company or, eventually, as a public entity.
