(Reuters) – Marqeta Inc, the U.S. payment card issuing start-up whose investors include Goldman Sachs Group Inc, is seeking to hire investment banks to advise on a potential initial public offering (IPO), according to people familiar with the matter.
The Oakland, California-based company enables companies to issue credit and debit cards to their staff. It has seen a surge in online shopping and food delivery payments processed through its platform, as U.S. consumers make purchases from home during the coronavirus outbreak.
Later this month, Marqeta is planning to interview investment banks that are seeking roles in its IPO, the sources said. The IPO could come later this year or in 2021, the sources said.
The sources requested anonymity to discuss the confidential IPO preparations. Marqeta declined to comment.
Marqeta raised $150 million in a private fundraising round in May, doubling its valuation to $4.3 billion. Banks have told the company it could go public at a considerably higher valuation, one of the sources said.
Marqeta’s revenue doubled in 2019 to around $300 million, the sources said.
Marqeta’s IPO would come amid a wave of stock listings by companies seeking to capitalize on the market’s recovery in the aftermath of the pandemic. Last month, another payments technology company, Shift4 Payments Inc, priced its $345 million IPO well above its indicated range and its shares have nearly doubled in value since then.
Founded in 2010 and backed by Goldman Sachs and Visa Inc, Marqeta has developed a platform that it says makes payment card issuing and processing simpler and more efficient for businesses.
The company currently operates in the United States, Canada, Europe and Asia-Pacific. By the end of last year, more than 140 million cards had been issued through its platform.
Marqeta’s clients include many well-known technology start-ups, such as payments company Square Inc, ride-hailing company Uber Technologies Inc and grocery delivery app Instacart.
Reporting by Joshua Franklin in Pompano Beach, Florida, and Krystal Hu in New York; Editing by Dan Grebler