Plaid, a fintech startup that connects financial institutions, is announcing its latest funding round on Thursday, valuing the company at $6.1 billion. While the new mark represents a steep decline from Plaid's peak valuation of $13.4 billion in April 2021, a year after a failed acquisition by Visa, the round still reflects a rebound for the startup, which struggled as part of a sector-wide "fintech winter" over the past few years.
The new funding, totaling over $575 million, comes partly in the form of a tender offer, meaning investors are buying existing shares to provide liquidity to Plaid employees. Franklin Templeton is leading the deal, with participation from Fidelity, BlackRock, and existing investors NEA and Ribbit Capital.
