Payments Startup Marqeta Aims for a $12 Billion Valuation in US IPO

Julija A. Image
ByJulija A.
June 07,2021

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.

About the author

Julia A. is a writer at SmallBizGenius.net. With experience in both finance and marketing industries, she enjoys staying up to date with the current economic affairs and writing opinion pieces on the state of small businesses in America. As an avid reader, she spends most of her time poring over history books, fantasy novels, and old classics. Tech, finance, and marketing are her passions, and she’s a frequent contributor at various small business blogs.

More from news

The US drive-thru restaurant franchise Checkers & Rally’s closed a multimillion-dollar deal with Israeli startup Hi Auto and purchased its AI-based speech recognition software.  The restaurant chain announced that it was implementing the technology in all the company-operated stores and most of the franchised locations.  Hi Auto’s technology will enable Checkers & Rally’s customers to place their orders through an automated speech recognition system that reportedly has a 95% accuracy rate. The system is capable of recording changes in the order during conversations with customers and understands complex menus and even half-sentences.  In short, the solution acts as the perfect employee who does not grow weary, never misses a day of work, is always polite, and never forgets to suggest upsells. The system helps solve the labor shortage problem in the US restaurant industry, which loses hundreds of thousands of employees each month. When compared to human employees, the software is able to take orders faster and handle more customers simultaneously without any errors. The move is seen as a strategic one by Checkers & Rally’s, which has been struggling in recent years to keep up with the likes of major chains such as Wendy’s, Burger King, and Jack in the Box.  Along with investing in restaurant POS systems that streamline order management, Checkers & Rally's has also been upgrading its mobile app. The goal is to make it easier for customers to order and pay ahead without having to wait in line for the cash register. The deal is also a major achievement for Hi Auto, which was founded in 2019 by Zohar Zisapel and has raised $8 million to date. The company will now be able to scale its operations and widen its presence in the US market with one of the biggest fast-food companies as its client.
By Julija A. · March 18,2022
Pony.ai, a US- and China-based autonomous driving tech-startup company, reported on March 7, 2022, that its valuation had peaked at $8.5 billion.
By Julija A. · March 14,2022
On January 25th, New York and Tokyo-based startup Bokksu announced its Series A funding round raised $22 million.
By Julija A. · February 07,2022

Leave your comment

Your email address will not be published.


There are no comments yet