Marqeta recordsdata S-1 as worth tops $16 billion on non-public markets

Marqeta is headquartered in Oakland, California.

Yalonda M. James | San Francisco Chronicle | Hearst Newspapers via Getty Images

Marqeta has grown into one of the hottest companies in digital commerce, although few consumers have ever heard of it.

His name becomes much better known. On Friday the company has submitted to go public Its investor prospectus reported annualized revenue growth of 123% to $ 108 million for the first quarter, while net loss decreased to $ 12.8 million from $ 14.5 million a year ago.

In 2020, annual sales more than doubled to $ 290.3 million and the company posted a loss of $ 47.7 million.

Marqeta was founded in 2010 and is based in Oakland, California. The company sells payment technology designed to detect potential fraud and ensure the proper routing of funds. The company issues bespoke physical cards that look like credit and debit cards and that DoorDash or Instacart contractors use to make checkout purchases in restaurants or supermarkets.

Many of Marqeta’s top customers have had record years as the pandemic shifted commerce to mobile devices. Marqeta is in power alongside the food delivery companies place Small business debit card and the popular Cash app for peer-to-peer payments. To confirm and Klarna, who provide small dollar credit to consumers for purchases like bicycles and televisions, use Marqeta’s technology to move money around with their installment loans.

Larry Albukerk, who brokered pre-IPO shares at EB Exchangesaid Marqeta shares traded for $ 33 to $ 35 each on the secondary market. Based on a total of 484.4 million Class A and B shares as listed in the prospectus, the company values ​​the company at approximately $ 16 billion to $ 17 billion.

A year ago, Marqeta raised capital with a valuation of around $ 4.3 billion.

“It’s definitely one of the hottest companies in the private markets,” said Albukerk, who also owns several shares in Marqeta. “It’s been stable over the past two years and has recently become one of the most sought-after stocks to buy in front of the public.”

Albukerk said Marqeta is at the top with Stripe and Plaid on fin-tech stocks that investors seek, but Marqeta is the only one of the three to trade regularly because the other two companies are more restrictive on property transfers.

Marqeta competes at one end of the payment technology market with older vendors like Fiserv and FISand at the other end with modern providers like Adyen and stripes. Marqeta differs most through its card issuing service, which allows customers to create a very special physical or virtual card for their business partners.

The company says in the Risk Factors sections of its prospectus that its expansion in 2020 mirrored that of its customers in the e-commerce and grocery and grocery delivery sectors. As the economy reopens, spending patterns may change.

“Our net sales growth has increased over the past few periods as additional consumers have used these services,” the company said. “If this trend in consumer demand and spending patterns slows or reverses, as housing restrictions ease and the pandemic subsides, our net sales growth may be adversely affected.”

Marqeta took 33rd place CNBC disruptor 50 List last year.

CLOCK: Jason Gardner, CEO of Marqeta, on the partnership with Goldman