For now, we're dealing with a confidential filing with the SEC. However, Marqeta is already expanding its pool of financial products and solutions with the ultimate goal of going public as soon as the regulatory process allows.
What Marqeta does
Marqeta is a fintech company that offers a range of financial products and services. According to Crunchbase, it's a "modern card issuing platform that provides infrastructure and tools to help companies build and manage payment programs."
Basically, Marqeta issues cards for companies (debit, credit, and Apple and Android Pay), processes payments, and delivers applications for businesses it works with through the Marqeta Dashboard. It also approves funding in real time and actively works to avoid fraud. Marqeta's partners include card manufacturing companies. It's also one of about 20 firms that are a part of the Visa Fast Track program.
Marqeta actually announced its consumer credit card offering after it let on about the IPO, perhaps in an attempt to spur investor interest and predict revenue diversification.
Marqeta redefines what it means to provide banking services
Marqeta is primarily a business-to-business company, so it isn't your average bank. However, it does offer digital banking services to issue cards and more. What makes Marqeta different is the fact that it simply offers the infrastructure companies require without overstepping into fully fledged banking territory.
Now that Marqeta is dabbling in the consumer side of things, it's only expanding its definition of banking.
Marqeta versus Stripe
Marqeta and Stripe both have open APIs and modern payment platforms. However, Marqeta's core business is in card issuing and processing, which Stripe offers but at a much smaller scale. The company also has a super customizable API-driven dashboard.
Other fintech companies are already publicly traded
8. Marqeta will now await feedback from the SEC on its filing and hopes to complete its IPO as early as April. Marqeta is eyeing a valuation in the IPO of around $10 billion. What do you guys think? @BrianFeroldi @StockMarketNerd @plantmath1 @alexkagin @JonahLupton @tpsojda— Max Bosenko (@MaxTheComrade) March 11, 2021
Stripe is still awaiting its own IPO, but it's just one fintech company that Marqeta is competing with. PayPal (NASDAQ:PYPL) is expanding to cryptocurrency, while Square (NYSE:SQ) is heavy in the credit card space. There's also buy-now-pay-later connoisseur Affirm (NASDAQ:AFRM), which is led by now-billionaire Max Levchin.
Marqeta's IPO valuation could boom
Insiders expect the Marqeta IPO to raise as much as $10 billion given the existing and projected scale of its business, which isn't a small feat. The company is enlisting the help of underwriters Goldman Sachs and JPMorgan Chase to help get the job done. The company's 2019 revenue hit $300 million and has increased since then.
Marqeta wants to go public as soon as April
The SEC regulatory process is notoriously slow. Sometimes, it can take as long as nine months for a company to get approval to go public. However, Marqeta hopes that it will be in line sooner rather than later. The company hopes to cut the ribbon as early as April. The stock price is still under wraps given it's a confidential filing. The news of a share price range will come out prior to the company's market debut date.