FinTech News
Business Banking FinTech Mercury Raises $300 Million
The FinTech Mercury has announced a new “mega-round” that more than doubles its previous valuation.
About the Round:
This week, Mercury revealed $300 million in new funding. The Series C was led by new investor Sequoia Capital along with participation from other newcomers Spark Capital and Marathon along with returning investors Coatue, CRV, and Andreessen Horowitz. Notably, this latest round gives the company a $3.5 million post-money valuation — up from the $1.6 billion valuation from its 2021 Series B. To date, Mercury has now raised $452.2 million.
The new funding comes as Mercury has recently reached a number of financial and growth milestones. These include completing ten consecutive quarters of profitability, hitting $500 million in revenue in 2024, growing its customer base by 40% year-over-year, and increasing its annual transaction value by 64% to hit $156 billion.
Along with this news, Mercury also announced that it would be adding four new members to its board of directors. These include Tim Mayopoulos, Tom Brown, Sonya Huang, and Kason Zhang.
About Mercury:
Mercury is a banking platform built for businesses. In addition to checking and savings accounts, other features include business credit cards, invoicing, and more. Plus, Mercury also offers working capital loans and venture debt products. Currently, the company has more than 200,000 clients across several industries.
What They’re Saying:
Commenting on Mercury’s journey up to this point, co-founder and CEO Immad Akhund stated, “Mercury began with the vision that banking should do more than safely hold money – it should bring all the ways people and businesses use money into a single product that feels extraordinary to use. We’ve continued to increase our profitability while maintaining a strong balance sheet.”
As for the new funding, Akhund remarked, “This round is about seizing the opportunities ahead for our next phase of growth, including driving innovation with new products, exploring acquisitions, and ensuring long-term financial flexibility.”
Meanwhile, Sequoia Capital partner and new Mercury board member Sonya Huang said of the firm’s investment, “Mercury is a disruptive company with a bold vision for the future of banking. It has been synonymous with banking for startups, but Mercury is built for nearly every business and is a real competitor to legacy banks. With its track record of profitability, innovation, operational excellence, and clear vision for what banking can become, I believe that Mercury has a chance to be a generational company at the intersection of financial services and software.”
My Thoughts:
It feels as though it’s been a while since we had a FinTech “megaround” of this magnitude. Make no mistake that this $300 million round from Mercury is a big deal. In fact, I wouldn’t be surprised if this puts the company on course for an initial public offering in the relatively near future — but, that’s just my opinion.
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