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Payments startup Marqeta raises $150 million, hits $4.3 billion valuation

Anna Irrera

By Anna Irrera

NEW YORK, May 28 (Reuters) - Payment card issuing startup Marqeta has raised $150 million from a U.S. institutional investor, doubling its valuation to $4.3 billion, the company said on Thursday.

The Oakland, California-based company declined to disclose the name of the investor.

The deal comes a year after Marqeta raised $260 million in a round led by hedge fund Coatue Management with participation from Vitruvian Partners and others.

Marqeta will use the funding to further develop its product and continue its international expansion, chief executive and founder Jason Gardner said an interview.

Backed by Goldman Sachs Group Inc and Visa Inc, Marqeta has developed a platform that it says makes payment card issuing and processing simpler and more efficient for businesses.

Marqeta's clients include many well-known technology startups such as payments company Square Inc, ride-hailing company Uber Technologies Inc, shopping app Instacart and lending startup Affirm.

Gardner said Marqeta's business has continued to grow at a rapid pace over the past few months, as COVID-19 lockdowns have led to a surge in demand for digital payments.

U.S. on-demand food delivery payment volumes processed through the Marqeta platform more than tripled from mid-February to mid-May, the company said.

Founded in 2010, Marqeta has over 425 employees and is continuing to hire, Gardner said. It 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. (Reporting by Anna Irrera; Editing by Tom Brown)