MQ Starts Trading on Nasdaq

Payment processing company Marketa’s share price began trading at $ 32.50 after its market debut on the Nasdaq on Wednesday.

Marqeta priced 45 million shares at $ 27 per share on Tuesday, above the initial target range of $ 20 to $ 24. The company raised $ 1.2 billion at an implicit valuation of $ 15.2 billion, up from last year’s private market valuation of about $ 4.3 billion.

Marqeta has become one of the hottest businesses in digital commerce. He has been named twice to the CNBC Disruptor 50 Enterprise and is ranked 7th on this year’s list.

Founded in 2010 and based in Oakland, California, Marqeta sells payment technology designed to detect potential fraud and properly route money. The company issues customized physical cards such as credit and debit cards. DoorDash and Instacart contractors use it for POS purchases in restaurants and supermarkets.

Marketa revealed in its IPO prospectus that annual sales in the first quarter increased 123% to $ 108 million, but net losses increased from $ 14.5 million in the previous year to $ 1280 million. It has been reduced. In 2020, annual revenue more than doubled to $ 290.3 million.

The company predicts that the global market for card payments will reach $ 45 trillion and will grow to $ 80 trillion by 2030. Growth will be provided using digital banks and Marketa’s card issuance platform. Brought to you by other online and mobile services to provide your customers with a payment program. Ten years ago, that technology didn’t exist.

“We created modern card issuance,” CEO Jason Gardener said at CNBC’s “Squawk Box” before stock trading began. “Today, US card trading volume is $ 6.7 trillion, but it’s only a small part of the $ 60 billion surface.”

Gardner’s shares are worth about $ 2 billion based on the IPO price.

“We either support their core business or become a core business,” Gardner added. “Using Klarna and Affirm, ordering food with apps like DoorDash and Instacart. This actually affects many consumers, whether or not they can. “

Marqeta states that it has issued more than 320 million cards to its customers so far. Many of our clients are aging as the pandemic pushes commerce onto mobile devices.

In addition to food delivery companies, Marketa uses Square’s debit cards for small business owners and a popular cash app for peer-to-peer payments. Affirm and Klarna provide consumers with small loans to buy bicycles, TVs and more, and use Marketa’s technology to transfer funds in installment loans.

JPMorgan Chase & Co. and Goldman Sachs were lead underwriters for Marqeta’s sale.

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MQ Starts Trading on Nasdaq

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