Payments

Marqeta, a card issuing and payments company, files to go public

The filing shows its valuation is about $16 billion in private markets

Payments technology company Marqeta has filed to go public with the Securities and Exchange Commission.

Despite the many headwinds of 2020, Marqeta’s annual revenue more than doubled to $290.3 million and saw a loss of $47.7 million, CNBC reports.

The filing shows that its annualized revenue grew in the first quarter to $108 million, marking growth of 123%. Meanwhile, its net loss declined to $12.8 million from the $14.5 million it saw a year prior.

Marqeta, which is based in Oakland, California, is a card issuing and payment processing company. It has an open API platform that powers payments for apps and services and was founded in 2010. The company’s customers include DoorDash, Instacart, Square, Affirm and Klarna, CNBC reported.

Just a year ago Marqeta raised $150 million at a $4.3 billion valuation, Reuters reported. But now the company could be valued around $16 billion to $17 billion, according to CNBC. Marqeta competes with the likes of Fiserv and FIS, Adyen and Stripe.

Marqeta lists various risk factors in its prospectus to investors, including how the COVID-19 pandemic will affect spending patterns in the future.

“Our net revenue growth in recent periods has increased, as additional consumers have shifted to using these services,” Marqeta said in the filing, CNBC reported. “If this trend in consumer demand and spending patterns slows or reverses as shelter-in-place restrictions ease and as the pandemic subsides, our net revenue growth may be adversely affected.”

Another risk factor is the fact that Square is a large customer accounting for 70% of its net revenue in 2020.

In other recent payment technology news, Rally, a fractional alternative investing platform in collectibles, has raised a $30 million Series B funding round led by Accel and has nabbed a $50 million debt facility from Upper90 Capital, a press release shows.

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