Payments Startup Marqeta Aims for a $12 Billion Valuation in US IPO
Payments startup Marqeta Inc. is eyeing a valuation of more than $12 billion in its US initial public offering, capitalizing on a surge in online shopping and food delivery payments processed through its platform during the coronavirus pandemic.
The California-based company plans to sell approximately 45.4 million shares priced at $20 and $24 apiece, thus raising $1 billion at the top end of the range.
Well known for enabling companies to issue debit and credit cards to their staff, Marqeta was launched with the aim to digitize commercial payment transactions between businesses and their clients via its open API. Headed by its founder and CEO, Jason Gardner, the payments startup previously announced that its revenue doubled to $290.3 million in 2020 as homebound customers made more online purchases.
Marqeta’s primary offerings include issuing physical, virtual, and tokenized cards, transaction processing, and applications for development, administration, anti-fraud, and chargebacks. Additionally, one of the startup’s most popular features is the Just-In-Time (JIT) Funding functionality that overcomes the need to maintain sufficient balances for each cardholder transaction. Essentially, JIT Funding is a method of funding an account automatically – in real-time – during the transaction process.
The company has been operational since 2010, and its growing list of customers now includes Uber, Square, Klarna, and DoorDash. It doubled its valuation to $4.3 billion in May 2020 when it raised $150 million in funding. With about 530.2 million Class A and Class B shares outstanding, Marqeta could be valued at over $12 billion this year.
The paperwork for Marqeta’s listing was confidentially submitted in February. The stock is expected to trade on the Nasdaq under the symbol MQ with JP Morgan Goldman Sachs as lead underwriters of the offering.