Marqeta Headquarters in Oakland, Calif.
Yalonda M. James | San Francisco Chronicle | Hearst Newspapers by way of Getty Photos
Marqeta has turn out to be one of many hottest companies in digital commerce, although few shoppers have ever heard of it.
Its identify is about to turn out to be way more acquainted. On Friday, the corporate filed to go public and, in its prospectus to traders, disclosed annualized income progress within the first quarter of 123% to $108 million, whereas its web loss narrowed to $12.8 million from $14.5 million a yr earlier.
In 2020, annual income greater than doubled to $290.3 million, and the corporate recorded a lack of $47.7 million.
Based in 2010 and primarily based in Oakland, California, Marqeta sells cost know-how that is designed to detect potential fraud and be sure that cash is correctly routed. The corporate points custom-made bodily playing cards that appear like credit score and debit playing cards, which contractors from DoorDash or Instacart use to make point-of-sale purchases from eating places or supermarkets.
A lot of Marqeta’s prime clients are coming off document years because the pandemic pushed commerce to cell units. Along with meal-delivery corporations, Marqeta powers Sq.’s debit card for small enterprise house owners and its in style Money App for peer-to-peer funds. Affirm and Klarna, which offer small-dollar lending to shoppers for purchases like bikes and TVs, use Marqeta’s know-how to maneuver cash with their installment loans.
Larry Albukerk, who brokers pre-IPO shares at EB Trade, mentioned Marqeta shares have been buying and selling on the secondary marketplace for $33 to $35 every. Based mostly on a complete of 484.4 million Class A and Class B shares, as listed within the prospectus, that values the corporate at about $16 billion to $17 billion.
A yr in the past Marqeta raised capital at a valuation of about $4.3 billion.
“It is positively one of many hottest corporations within the non-public markets,” mentioned Albukerk, who additionally owns some Marqeta shares. “It has been a gentle performer for the final two years and lately has turn out to be one of the vital sought-after shares to purchase pre-public.”
Albukerk mentioned Marqeta is up there with Stripe and Plaid by way of fin-tech shares that traders are in search of, however Marqeta is the one one of many three that trades frequently as a result of the opposite two corporations are extra restrictive with possession transfers.
Marqeta competes on one finish of the cost know-how market with legacy distributors like Fiserv and FIS, and on the opposite finish with fashionable distributors like Adyen and Stripe. The place Marqeta most differentiates itself is in its card-issuing service, which permits purchasers to create a really specialised bodily or digital card for his or her enterprise companions.
The corporate says within the threat components sections of its prospectus that its enlargement in 2020 mirrored that of its purchasers in e-commerce and meals and grocery supply. Because the financial system reopens, spending patterns may change.
“Our web income progress in latest durations has elevated, as extra shoppers have shifted to utilizing these companies,” the corporate mentioned. “If this pattern in shopper demand and spending patterns slows or reverses as shelter-in-place restrictions ease and because the pandemic subsides, our web income progress could also be adversely affected.”
Marqeta ranked thirty third on CNBC’s Disruptor 50 checklist final yr.
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