MQ starts trading on the Nasdaq

Shares of payment processor Marqeta opened at $ 32.50 after its market debut Wednesday on the Nasdaq.

Marqeta valued just over 45 million shares at $ 27 apiece on Tuesday, above its initial target range of $ 20 to $ 24. The company raised $ 1.2 billion at an implied valuation of $ 15.2 billion, up from its last private market valuation last year of about $ 4.3 billion.

Marqeta has become one of the hottest companies in digital commerce. It’s twice CNBC 50 disruptor company and ranked # 7 on this year’s list.

Founded in 2010 and headquartered in Oakland, Calif., Marqeta sells payment technology designed to detect potential fraud and ensure money is channeled correctly. The company issues personalized physical cards that resemble credit and debit cards, which subcontractors from DoorDash or Instacart use to make point-of-sale purchases in restaurants or supermarkets.

In its IPO prospectus, Marqeta reported annualized first quarter revenue growth of 123% to $ 108 million, while its net loss narrowed to $ 12.8 million from $ 14.5 million. of dollars a year earlier. In 2020, annual revenue more than doubled to $ 290.3 million.

The company says the total global card payments market has reached $ 45 trillion and is expected to reach $ 80 trillion by 2030. The growth is coming from digital banks and other online and mobile services that use the Marqeta card issuance platform to offer payment programs to their customers. Ten years ago, the technology did not exist.

“We created the modern card show,” CEO Jason Gardner said on CNBC’s “Squawk Box” Wednesday morning before the shares began trading. “Today in the United States there is nearly $ 6.7 trillion in card volume and we’re just scratching the surface with $ 60 billion in volume.”

Gardner’s stake in the company is worth nearly $ 2 billion based on the IPO price.

“Either we support their core business or we are their core business,” Gardner added. “It really affects a lot of consumers at the point of sale, whether it’s their ability to use Klarna or Affirm or ordering food on an app like DoorDash or Instacart.”

Marqeta claims to have issued more than 320 million cards to its client to date. Many of its customers are emerging from record years as the pandemic pushed commerce to mobile devices.

In addition to meal delivery businesses, Marqeta powers Square’s debit card for small business owners and its popular Cash app for peer-to-peer payments. Affirm and Klarna, which offer low-value loans to consumers for purchases such as bicycles and televisions, use Marqeta’s technology to transfer money with their installment loans.

JPMorgan Chase & Co. and Goldman Sachs were the main underwriters of the Marqeta offering.

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