Payment platform Marqeta has raised $250 million in a series E funding round, on a valuation of about $1.9 billion, according to reports.
Marqeta, which is California-based and also works with payment cards for brands, is expected to close the round in a few weeks, although the numbers could potentially change. However, the $250 million and the valuation are the targets.
This round’s investors haven’t been revealed, but the company has previously been funded by Granite Ventures, Goldman Sachs, Visa — which invested $25 million — 83North and others.
The Series E round is $3.8908 a share and the valuation is a large leap from 2018’s number, which was $545 million.
The company works with other FinTechs like Square, Affirm, Klarna and Kabbage, and it said that last year in October its volume for payments grew 100 percent. The company has also recently expanded into Europe, where there are a number of digital startup banks like N26 and Revolut, which have been successfully challenging traditional banks.
These types of banks now account for 14 percent of bank market revenue in Europe, which amounts to $238 billion. In the U.S., challenger banks only make up 3.5 percent.
Marqeta sees an opportunity in this and is focusing on services that would work alongside digital payment ventures. Marqeta has a bevy of products to offer, including virtual cards, real-time fund transfers and voice services for customers. The company is continuously boosting its growth both in the United States and Internationally.
“Marqeta is the clear market leader in modern card issuing, and we’re thrilled to be part of their already phenomenal growth story,” said Will Griffith, partner at ICONIQ Capital, at the time. “They have the most advanced card issuing technology in the category, and they have assembled an extraordinary team of industry leaders.”