2020 saw a record high 480 IPOs raising roughly $178bn, with the list including many notable names including AirBnB, Fubo TV, Lemonade, DoorDash, and Palantir that have delivered triple-digit returns for investors. There are no signs that the frenzy is set to slow down in 2021. Three major fintechs –SoFi, Coinbase, and MoneyLion announced their plans to go public along with rumors that Stripe and Klarna will follow. Now there’s a report that another unicorn will join the fray.
After months of rumours, US-based payment card issuing startup, Marqeta has taken the final steps towards its IPO. According to a Reuters report, it has confidentially filed for an initial public offering (IPO) with the Securities and Exchanges Commission (SEC). The company will now wait for feedback, approval, and a launch date from the SEC, which could come as early as April. The company is believed to be seeking a valuation of $10 billion. The news of a potential IPO was first reported in July after Marqeta saw its revenue double in 2019, reaching $300 million.
Over the past 6 months, Marqeta has taken steps that suggested it was heading in this direction. In June, it added its first independent directors, a move that’s often viewed as a precursor to an IPO. It also hired Goldman Sachs and JPMorgan Chase & Co to coordinate the listing. Both banks are also partners of Marqeta. The company provides a range of services to Goldman Sachs for its digital bank Marcus. JPMorgan uses Marqeta’s technology for its commercial card business to provide clients with virtual cards ready for immediate spending through mobile wallets such as Apple Pay or Samsung Pay.
The firm has had a string of recent announcements. In March of 2020, it partnered with Afterpay to bring buy now, pay later alternative credit to the US market. In the same month, it was selected by Visa to receive express access to credentials and other services through its fast track program. In October, Mastercard invested in Marqeta as the two companies announced plans to deepen their global collaboration, which began in 2014. Uber also tapped Marqeta to serve as its global card-issuing partner.
Founded in 2010 by CEO Jason Gardner, Marqeta aims to be the world’s first modern card issuer. Headquartered in Oakland, California, it offers a platform designed to simplify payment tools for card issuers. Its mission “is to be the global standard for modern card issuing, empowering builders to bring the most innovative products to the world.” The company has raised a total of $528 million and is valued at $4.3 billion after closing a Series E round in May of 2020. Its backers include Visa, Mastercard, Goldman Sachs, Hard Yaka, Greylock, Coatue, Iconiq Capital, Granite Ventures, and 83North.