Marketa submits S-1 in private market with value over $ 16 billion

Marketa headquarters in Oakland, California.

Yaronda M. James | San Francisco Chronicle | Getty Images Hurst Newspaper

Marqeta has become one of the most popular businesses in digital commerce, but few consumers have heard of it.

The name is becoming much more familiar.On friday, the company Submit to publish Investor prospectuses also showed annual revenue growth from 123% to $ 108 million in the first quarter, but net losses shrank from $ 14.5 million in the previous year to $ 12.8 million.

In 2020, annual revenue more than doubled to $ 290.3 million, with the company recording a loss of $ 47.7 million.

Founded in 2010 and based in Oakland, California, Marqeta sells payment technology designed to detect potential fraud and transfer money properly. The company issues customized physical cards that look like credit and debit cards. It is used by DoorDash or Instacart contractors to make POS purchases from restaurants and supermarkets.

Many of Marqeta’s top customers have lost record years as the pandemic has boosted commerce to mobile devices.In addition to the food delivery company, Marketa Powers Squares Its popular cash app for debit cards and peer-to-peer payments for small business owners. agree with Klarna, which provides consumers with a small loan to buy bicycles, TVs, etc., uses Marqeta’s technology to transfer funds in installment loans.

Larry Albukerk shares pre-IPO stock EB exchange, Said that Marketa shares are trading in the secondary market for $ 33- $ 35 respectively. Based on the total of 484.4 million Class A and Class B shares listed in the prospectus, the company’s value is approximately $ 16 billion to $ 17 billion.

A year ago, Marketa raised capital with a valuation of about $ 4.3 billion..

“This is arguably one of the most popular companies in the private market,” said Albukerk, who also owns Marqeta shares. “It has shown stable performance over the last two years and has recently become one of the most popular stocks for buying prepublics.”

According to Albukerk, Marqeta outperforms Stripe and Plaid in terms of fintech shares that investors are looking for, but trades regularly as the other two companies have more restrictions on the transfer of ownership. Only Marqeta has been done.

Marqeta is part of the payment technology market and competes with legacy vendors such as: Fiserv And FIS, And on the other end, Adyen And stripes. The most differentiating thing about Marqeta is its card issuance service. This allows clients to create very specialized physical or virtual cards for their business partners.

The company states in the Risk Factors section of the prospectus that the expansion in 2020 reflects the expansion of customers in e-commerce and food and grocery delivery. Spending patterns can change as the economy resumes.

“Our net sales growth has increased over the last few years as additional consumers have shifted to using these services,” the company said. “As shelter-in-place restrictions are relaxed and the pandemic subsides, if this trend in consumer demand and spending patterns slows or reverses, our net revenue growth could be adversely affected.”

Marketa ranked 33rd CNBC Disruptor 50 Last year’s list.

to see: Marketa CEO Jason Gardener on Partnership with Goldman

Marketa submits S-1 in private market with value over $ 16 billion

Source link Marketa submits S-1 in private market with value over $ 16 billion

Back to top button