Marqeta, Inc. plans to offer approximately 45.5 million shares at an estimated initial public offering (IPO) price in the range of $20 to $24, according to an amendment to an S-1 regulatory filing with the U.S. Securities and Exchange Commission (SEC).
Marqeta, which plans to go public on the Nasdaq Global Select Market under the “MQ” ticker symbol, disclosed annualized net revenue of $350 million in Q4 2020 and a $48 million net loss in 2020.
The firm’s modern card issuing platform lets clients like Square, Klarna, Instacart, DoorDash and Affirm make tailored payment cards.
Square comprised 60 percent of Marqeta’s net revenue for the year ending Dec. 31, 2019 and 70 percent of its revenue for the year ending Dec. 31, 2020. Marqeta generated 66 percent of its net revenue from Square in the three months concluding on March 31, 2020 and 73 percent of its net revenue from Square in the three months concluding on March 31, 2021.
In the case of Square, modern card issuing helps a consumer move funds to a debit card when the consumer receives money via Square’s Cash App. And if a customer orders supermarket items via Instacart or food via DoorDash, money migrates from the app to the delivery driver’s payment card. As a result, the driver can pay for precisely what the customer ordered – and nothing additional.
“Before the rise of modern card issuing, creating cards was slow, complex and subject to mistakes. Marqeta helps solve these problems. Our platform, powered by open APIs [application programming interfaces], enables businesses to develop modern, frictionless payment card experiences for consumer and commercial use cases that are either the core of, or in support of, their core business,” Marqeta said in the filing.
Marqeta also noted that the Marqeta platform processed $24 billion of total processing volume (TPV) in the three months concluding on March 31, 2021, up 167 percent from $9 billion in the three months concluding on March 31, 2020.
PYMNTS reported in May that Marqeta filed with the U.S. SEC to go public, citing the firm’s S-1. At the time, it was noted that the filing was broadly anticipated. In February, PYMNTS reported that Marqeta filed confidentially for an IPO with the SEC, citing a published report.