Another Fintech Company to Go Public

Fintech is a hot commodity for investors these days. According to data from market research firm CB Insights, the first quarter of 2021 saw 11 fintech companies going public through IPOs. 

On Friday, another Fintech company filed regulatory paperwork for an initial public offering. Marqeta, an 11-year-old company that provides both virtual and physical payment cards for companies like Uber, Square and Instacart, disclosed on Friday that its annual revenue last year had doubled over the previous year, reaching $290.3 million in 2020. In addition, the company said it had processed 1.6 billion transactions in 2020, with 57 million active cards in use at the end of the year. Overall, the company incurred a net loss of $47.7 million in 2020, down from a loss of $58.2 million in 2019.

Some speculation indicates that the target IPO valuation could be as high as $15 billion.

Marqeta, whose key products include pre-paid cards, debit cards and credit cards, enables customers to personalize cards with business branding for both virtual or business cards as well as control where and how cards can be used. Cards also can be provisioned into digital wallets and allows the company to manage users, card inventory and fulfillment all in one place. According to Marqeta, their competitive advantage is that their platform was built from the ground up, rather than adopting legacy solutions for modern use. The company serves global customers of all sizes around E-commmerce, travel, on-demand delivery, expense management and digital banking.