Marqeta has acquired Power Finance, a fintech infrastructure startup.
TechCrunch reports that the digital card platform bought the startup for $223 million in cash, making the acquisition Marqeta’s first since being founded in 2010.
The outlet details that around one-third of the purchase price is payable over a two-year period under undisclosed conditions. What’s more, Marqeta is set to pay Power Finance an additional $52 million if one undisclosed milestone is met within the next 12 months.
Marqeta aims for expansion as it plans to launch “a wide range” of credit products and constructs for customers, thanks to the acquisition.
Following the deal’s close, Power Finance Founder and CEO Randy Fernando is set to lead the product management of Marqeta’s credit card platform.
“Companies like ours were made possible because of the path Marqeta blazed in modern card issuing, demonstrating the possibilities in payments with flexible and modern payment infrastructure,” Fernando shared in a statement, according to the outlet. “At Power, we built a full-stack, cloud-native credit card issuance platform, and by becoming a part of Marqeta we have the ability now to bring this innovation to a much larger market at global scale.”
The acquisition comes on the heels of Simon Khalaf becoming Marqeta’s new CEO. He shared that the company is working to “meet increasing demand from emerging, mobile-first retailers, creator marketplaces and labor marketplaces.”
“We’re going to see a lot of new demand around co-brands,” Khalaf said, according to the outlet. “Businesses want a branded card that is alive that is integrated with their properties. And we’re going to be able to serve that market better versus just issuing a piece of plastic with standard rewards.”