Shares of payment processor Marqeta opened at $32.50 after its public debut on Wednesday on the Nasdaq.
Marqeta priced just 45 million shares at $27 a share on Tuesday, well above its initial target range of $20 to $24. The company raised $1.2 billion at an implied valuation of $15.2 billion. That’s up from the most recent private market valuation last year of around $4.3 billion.
Marqeta has emerged as one of the hottest businesses in digital commerce. It̵7;s a two-time CNBC Disruptor 50 company and is at number 7 on this year’s list.
Marqeta was established in 2010 and is based in Auckland. california It sells payment technology designed to detect potential fraud. and guarantee that the money will be sent properly. Card companies that are customized to look like credit and debit cards. This is used by contractors from DoorDash or Instacart to purchase point-of-sale items from restaurants or supermarkets.
In its IPO prospectus, Marqeta revealed first-quarter annual revenue growth of 123% to $108 million, while net loss fell to $12.8 million from $14.5 million a year earlier. more than doubled to $290.3 million
The company said the identifiable global market for card payments reached $45 trillion. and is expected to grow to $80 trillion by 2030. The growth comes from digital banking and other online and mobile services that use the Marqeta card issuing platform, a payment program to its customers. Decades ago, technology didn’t exist.
“We create cutting-edge card issuance,” CEO Jason Gardner said on CNBC’s “Squawk Box” Wednesday morning before the stock started trading. “Today in the United States there are nearly $6.7 trillion in card volume. And we just scratched the surface with $60 billion in card volume.”
Gardner’s stake in the company is worth nearly $2 billion at the IPO price.
“We either support their core business or we are their core business,” Gardner added. “This affects many consumers at the point of sale, whether it’s the ability to use Klarna or Affirm, or order food in apps like DoorDash or Instacart.”
Marqeta said it has issued more than 320 million cards to customers to date. Many of the company’s customers have been discontinued over the years. As the pandemic has driven commerce to mobile devices.
In addition to food delivery companies, Marqeta also supports Square Debit Cards for small business owners and the popular Cash App for peer-to-peer payments. TV Use Marqeta’s technology to move money with installment loans.
JPMorgan Chase & Co. and Goldman Sachs are Marqeta’s underwriters.
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