Online card and payment processor Marqueta raises US$1.2b

Marqeta Inc., an online card and payment processing company, raised US$1.23 billion after pricing its initial public offering above a marketed range, Bloomberg reports.

The Oakland, California-based company sold 45.5 million shares for US$27 apiece on Tuesday, according to data compiled by Bloomberg. Marqeta had marketed the shares for US$20 to US$24 each.

Marqeta offers physical and virtual debit, credit and prepaid cards. Its customers include a technology-enabled companies like Uber Technologies Inc., Doordash Inc. and Instacart Inc.

Uber is also a backer of the company through the holding of a stock warrant.

At US$27 a share, the company has a market value of US$14.3 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Its diluted value, which includes options, restricted stock units and warrants, is at least US$15 billion.

Founded in 2010 by PropertyBridge co-founder Jason Gardner, the company reported $108 million in revenue in the first quarter of the year, more than doubled the same period in 2020.

Its net loss narrowed to US$12.8 million versus US$14.5 million last year.

Payments company Square Inc is Marqeta’s largest customer, accounting for 70 percent of its net revenue in 2020, according to its filings.

Marqeta’s backers include 83North II, Coatue, Iconiq, Granite Ventures, and Discover Financial services, according to its filings.