About one-third of the purchase price is payable over a two-year period subject to certain undisclosed conditions. And, if one undisclosed milestone in particular is met within the next 12 months, Marqeta said it will pay an additional $52 million for the startup, bringing the total acquisition price to $275 million.
Founded in early 2021 by Randy Fernando and Andrew Dust, New York-based Power Finance announced last September that it had raised $16.1 million in a seed funding round co-led by Anthemis and Fin Capital. Other backers include CRV, Restive Ventures (formerly Financial Venture Studio), Dash Fund, Plug & Play and a group of angel investors. The company at the time had also announced a $300 million credit facility.
Oakland, California-based Marqeta, which went public in 2021 and is today valued at nearly $3.7 billion, touts that it “provides a single, global, cloud-based, open API Platform for modern card issuing and transaction processing.” In other words, it provides the tools for companies — fintechs and otherwise — to provide cards, wallets and other payment mechanisms. Its customers include Block (formerly known as Square), Uber, Google, Affirm, DoorDash, JP Morgan, Citi, Goldman Sachs, Instacart and Ramp, among others.
Power’s first product is a credit card issuance program, which is designed for companies, brands and banks to offer embeddable fintech experiences, such as customized credit card programs, targeted promotions and personalized rewards, into existing mobile and web applications.