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Taking into account Marqeta’s valuation in the private markets, where its shares are selling from $33 to $35 each, the company’s market cap post IPO may top $16 billion to $17 billion, a figure that will outpace the record set by Affirm.
Oakland, California-based payment firm Marqeta Inc has filed for an Initial Public Offering (IPO) in its bid to go public in the United States. The filing with the Securities and Exchange Commission (SEC) submitted on Friday shows how the firm has outperformed its personal records in the past few quarters.
Per the company’s key metrics as contained in the filing, its processed transactions came in at $60 billion in the 2020 fiscal year. Its primary business which revolves around credit and debit card issuance also received a good boost, with more than 320 million cards issued since inception to date. As of the fourth quarter of 2020, the company reported that its annualized net revenue came in at $350million.
Marqeta is one of the few firms that wedged through the storms of the coronavirus pandemic to boost their record. The company’s performance trickled down into 2021, with revenue in the first three months of the year growing by 123% to $108 million, while its net loss trimmed to $12.8 million from $14.5 million a year earlier. This revenue growth which was fueled by a shift to mobile payments due to the pandemic may take back some of the gains, should spending patterns change, as the company noted.
“Our net revenue growth in recent periods has increased, as additional consumers have shifted to using these services,” the company said. “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.”
Marqeta sells payment technologies to help firms detect anomalies in funds transfer. The firm also works with clients such as Square Inc (NYSE: SQ), DoorDash Inc (NYSE: DASH), and Instacart among others, who issue the company’s customized cards to their customers. These cards are widely used in PoS terminals in supermarkets, restaurants, and other retail outlets.
Marqeta IPO May Unseat Affirm’s Public Valuation Debut Record
The US IPO market is growing by the numbers every day, and as the industry seeks to beat last year’s record, fintech firms are contributing their quota to achieving this goal. Of the fintechs that have gone public in 2021, loan service provider Affirm Holdings Inc (NASDAQ: AFRM) ranks ahead with a debut valuation of $11.9 billion per a Forbes report.
Going by Marqeta’s valuation in the private markets, where its shares are selling from $33 to $35 each, the company’s market cap post IPO may top $16 billion to $17 billion, a figure that will outpace the record set by Affirm.
“It’s definitely one of the hottest companies in the private markets,” said Larry Albukerk, a stockbroker at EB Exchange who also owns some Marqeta shares. “It’s been a steady performer for the last two years and recently has become one of the most sought-after stocks to buy pre-public.”
While there is no proposed figure given for the Marqeta IPO raise, the company is set to debut on the Nasdaq Exchange under the ticker symbol ‘MQ’. The lead underwriters for the IPO include Goldman Sachs Group Inc (NYSE: GS), and JPMorgan Chase & Co (NYSE: JPM).