Plaid has raised $575 million in a secondary share sale that sees the open banking platform's valuation drop from $13.4 billion in 2021 to $6.1 billion.
Ribbit Capital, NEA, Fidelity Management & Research Co, BlackRock, and Franklin Templeton joined the round, which will give some Plaid employees the chance to cash out restricted stock that expires at the end of 2025.
Plaid CEO Zach Perret tells CNBC that the firm has seen "substantial" growth over the last year but that the valuation drop is part of wider market conditions.
Says Perret: “The reality is our business is much stronger and revenue has grown quite substantially. The profitability of business has gotten quite a lot better, and yet we are impacted by market multiples, as many companies are.”
He adds that while an IPO is still the plan, "we still have a lot of internal work to do. We're not ready, which is why we didn't consider it right now."
Founded in 2012, Plaid helps consumers connect their financial accounts from over 12000 providers to more than 8000 fintech providers.
The firm's 2021 $13.5 billion valuation came months after it was forced to abandon a $5.3 billion takeover by Visa after the US Justice Department moved to block the deal over competition concerns.