US-based Marqeta Inc, a major payment card issuing Fintech firm whose investors include giant Wall Street investment bank Goldman Sachs, is reportedly planning to work with various investment banks in order to potentially launch an initial public offering (IPO).
As reported by Reuters, which cited sources familiar with the matter, the Oakland, California-based Fintech firm will be interviewing several investment banks later this month. The banks may decide to take part in the company’s (potential) IPO.
Marqeta assists businesses with issuing credit and debit cards to their staff members. The company claims there’s been a significant increase in e-commerce and food delivery payments handled through its platform. This, as US consumers have been making more purchases online from their homes due to the COVID-19 outbreak.
In May 2020, Marqeta secured $150 million through a private investment round, which had doubled the firm’s valuation to approximately $4.3 billion. Banks have advised the Fintech firm about going public, and have suggested that it could do so at a much higher valuation, according to sources.
Last year, Marqeta’s revenue increased by 100% to about $300 million, the sources claim.
The Fintech company’s IPO could come during a wave of stock listings by firms trying to take advantage of the market’s anticipated recovery, when the pandemic has hopefully passed. In June 2020, Shift4 Payments, an established payments technology firm, had valued its $345 million IPO significantly above its suggested range and the company’s shares have almost doubled in value now.
Established in 2010 and backed with investments from Visa and Goldman Sachs, Marqeta aims to make payment card issuing and processing a lot easier and more efficient for companies.
At present, Marqeta offers services in the US, Canada, Europe and the APAC region. The Fintech firm had issued over 140 million cards, as of last year.
The company’s clients include several high-profile tech startups, such as Square Inc and Uber Technologies Inc.