MQ begins buying and selling on Nasdaq

Shares in payment processing company Marqeta opened at $ 32.50 following its market debut on the Nasdaq on Wednesday.

Marqeta listed just over 45 million shares at $ 27 apiece on Tuesday, which is above its initial target range of $ 20 to $ 24. The company raised $ 1.2 billion at an implicit valuation of $ 15.2 billion, up from its last private market valuation last year of approximately $ 4.3 billion.

Marqeta has grown into one of the hottest companies in digital commerce. It’s a two-time CNBC Disruptor 50 company and # 7 on this year’s list.

Founded in 2010 and based in Oakland, California, Marqeta sells payment technology designed to detect potential fraud and ensure money is properly routed. The company issues bespoke physical cards that look like credit and debit cards that DoorDash or Instacart contractors use to make point-of-sale purchases in restaurants or supermarkets.

In its IPO, Marqeta announced annualized first-quarter revenue growth of 123% to $ 108 million, while net loss decreased from $ 14.5 million a year ago to $ 12.8 million. In 2020, annual sales more than doubled to $ 290.3 million.

The total addressable global card payments market has reached $ 45 trillion and is expected to grow to $ 80 trillion by 2030, according to the company. The growth is coming from digital banks and other online and mobile services using Marqeta’s card issuing platform using payment programs for their customers. A decade ago the technology didn’t exist.

“We’ve created a modern card issuance,” CEO Jason Gardner said in CNBC’s Squawk Box on Wednesday morning before shares began trading. “Today the United States has a card size of nearly $ 6.7 trillion, and we’re only scratching the surface at $ 60 billion.”

Gardner’s stake in the company is nearly $ 2 billion based on the IPO price.

“We either support their core business or we are their core business,” added Gardner. “This really affects a lot of consumers at the point of sale, be it their ability to use Klarna or Affirm or order groceries through an app like DoorDash or Instacart.”

Marqeta says it has issued more than 320 million cards to its customers to date. Many of his customers are from the record years since the pandemic shifted commerce to mobile devices.

In addition to food delivery companies, Marqeta Squares operates small business debit cards and its popular Cash app for peer-to-peer payments. Affirm and Klarna, who offer consumers small dollar loans for purchases such as bicycles and televisions, use Marqeta’s technology to move money around with their installment loans.

JPMorgan Chase & Co. and Goldman Sachs were the lead underwriters for the Marqeta offering.

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