Goldman Sachs’ significant investment

Goldman Sachs Group (GS) is one of the largest financial services companies in the United States. The company provides diversified investment management through its investment banking, wealth management and private equity divisions. Goldman Sachs provides services to individuals and companies, preferring high-net-worth investors and large companies. The company’s private equity division is particularly active. From its investment portfolio, its focus is on acquiring some of the most exciting technology, retail and financing companies in the United States. In this article, we briefly introduce the company’s history and its four noteworthy investments.

Key points

  • Goldman Sachs regularly participates in venture capital and bank investments.
  • The company is part of a $1 billion financing for African e-commerce platform Jumia in 2016.
  • Goldman Sachs also contributed to Square’s $590.5 million financing.
  • Judo Bank of Australia received USD 100 million in debt financing from Goldman Sachs in April 2019.
  • Goldman Sachs is part of Marqeta’s two rounds of financing: $45 million in June 2018 and $260 million in May 2019.

Goldman Sachs: A brief overview

Goldman Sachs is a multinational investment services company headquartered in New York City. The company was founded in 1869 and provides a range of services including asset management, brokerage and investment management.The company provides services to institutions and individual customers, companies and governments in more than 30 different countries around the world.

As of 2019, Goldman Sachs is one of the world’s leading banks in terms of assets.It is also one of the world’s largest asset management companies.The company also enjoys the honor of being one of the most valuable brands in the world.

Over the years, the company has led or participated in multiple rounds of financing for various companies. The company’s financing includes venture capital and bank investment.

Jumia

Jumia was established in Lagos, Nigeria in 2012 and is currently headquartered there.The company is an e-commerce retailer and logistics service provider—much like Amazon. The company allows local African businessmen to join the site to provide consumers with their goods and services. The company was also listed by CB Insights as one of three African unicorn companies valued at more than $1 billion in 2018.

More than 81,000 African companies conduct business through Jumia. Some of the company’s highlights include:

  • 1.2 billion consumers
  • Do business in 14 different countries
  • More than 700 million visits in 2018

According to Crunchbase data, since November 2014, the company has raised a total of $823.7 million in a total of five rounds of financing.Part of this funding includes the $326 million it received in 2016, which includes many different companies including Goldman Sachs.

Jumia is considered to be one of the unicorn companies in Africa and was listed on the New York Stock Exchange in 2019.

Jumia goes public

After months of consideration, Jumia decided to conduct an initial public offering (IPO) on the New York Stock Exchange (NYSE) on April 12, 2019. This is the first African startup to be listed on a major exchange. The stock opened at $14.50, 13.5 million shares were issued, and a total of $196 million was raised.

Jumia’s future?

The company claims to have huge growth potential. This is because, as of May 2020, 60% of Africa’s 1.34 billion people have no access to the Internet.Alphabet’s Google and Facebook hope to extend connectivity to people in remote and impoverished areas of Africa.

square

Square is a financial services company and mobile payment company headquartered in San Francisco. The company produces software and hardware payment products such as Square Contactless and Chip Reader, Square Stand, Square Register and Square Magstripe Reader.Since its establishment in 2009, the company has also been involved in the small business financing industry.It also operates a cash application, which is a person-to-person payment service.

According to Fortune magazine, the company’s initial public offering was launched in November 2015, when it was valued at approximately US$2.9 billion. The stock traded at $9 per share, and a total of 27 million shares were issued on the opening day.

Since 2009, Square has raised a total of US$590.5 million in nine different financing rounds.Some of them are from Goldman Sachs, which participated in the company’s series E round of financing in October 2014. This round of financing won Square a total of 150 million US dollars in funding.

Judo Bank

Judo Bank is the newest member of the Goldman Sachs portfolio. The company provides financing and banking services to small and medium enterprises in Australia. It was established in 2016 with seed funding provided by a series of Australian investors, named Judo Capital.In 2019, the company entered the retail deposit field.

The company’s first round of financing was in August 2018. According to Crunchbase, the company has raised $1.5 billion in six rounds of financing since then.In April 2019, Judo received US$100 million in debt financing from Goldman Sachs.According to the Financial Review, in November 2018, Credit Suisse provided the company with US$350 million in debt financing.

Mageta

Marqeta is another payment platform company. It is located in Oakland, California, and provides technology and platforms for card issuance and processing.

According to Crunchbase data, as of June 2020, Marqeta has raised a total of $528 million in eight different rounds of financing.Goldman Sachs is part of a US$45 million investment round in Marqeta in June 2018 and another US$260 million investment round in May 2019. As of May 2020, the latest round of financing has put the company’s valuation at approximately US$4.3 billion.According to Reuters, Goldman Sachs is trying to offset its poor trading results by adding more retail businesses and technology startups to its portfolio.

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