Market Overview

Goldman Sachs-Backed Card Issuer Marqeta Gets Ready To Go Public

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Goldman Sachs-Backed Card Issuer Marqeta Gets Ready To Go Public

Marqeta Inc, a United States-based card issuing company backed by Goldman Sachs Group Inc (NYSE: GS), is preparing to go public.

What Happened

Marqeta is in the process of hiring investment banks for an initial public offering.

The IPO may be held this year or in 2021, according to Reuters’ anonymous sources.

The card-issuer has been bolstered by the ongoing pandemic and has witnessed a spike in usage by online shoppers and users of food delivery services. 

Founded in 2010, the company now operates in the United States, Canada, Europe, and Asia-Pacific.

Marqeta’s services are used by companies to issue credit and debit cards to their workers. By the end of 2019, it had issued more than 140 million cards.

Why It Matters

Marqeta’s valuation rose to $4.3 billion in May after it raised $150 million in fresh capital from an undisclosed investor. 

The Oakland, California-based company counts Square Inc (NYSE: SQ), Uber Technologies Inc (NYSE: UBER), Affirm, Instacart, and DoorDash among its clients.

Last year, Marqeta raised $260 million in equity financing lead by Coatue, a technology sector hedge fund, and Vitruvian Partners, an international investment firm, along with others.

Banks have told the card issuer that it could go public at a much higher valuation, according to Reuters.

Marqeta’s listing comes at a time when companies are seeking to take advantage of the recent upswing in markets in the wake of the COVID-19 pandemic.

In June, the payment processor, Shift4 Payments, Inc’s (NYSE: FOUR) IPO was priced at $23 per share. On Wednesday, that company’s shares set a new yearly high of $47.95. 

Price Action

On Thursday, Goldman Sachs shares closed 2.86% lower at $196.83.

 

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