Digital banking startup Mercury has raised $300 million in major and secondary funding at a $3.5 billion post-money valuation, the corporate confirmed to Fintech on Wednesday.
The valuation is greater than double the startup’s valuation when it final raised capital — a $120 million Sequence B spherical in 2021 that valued the corporate at $1.62 billion post-money.
Sequoia led the newest spherical — a Sequence C — alongside current backers Coatue, CRV, Andreessen Horowitz, and new traders Spark Capital and Marathon. It’s the primary examine that Sequoia has written into Mercury because the startup was based in 2017. The elevate brings Mercury’s complete major and secondary funding to $500 million. The corporate declined to interrupt down how a lot of the Sequence C was major and the way a lot was secondary with Mercury CEO and co-founder Immad Akhund saying the “majority” was major.
Mercury is planning on doing a broader worker tender provide at a later date, he added.
Akhund additionally informed Fintech that the startup notched $500 million in income in 2024 and that it has seen 10 consecutive quarters of profitability on each EBITDA and GAAP web earnings.
The corporate counts over 200,000 firms as clients and claims it has seen 40% year-over-year buyer development. Akhund declined to share income figures from earlier years however famous that its fee quantity elevated by 64% to $156 billion. Its clients vary in dimension, in accordance with Akhund, and embrace tech firms equivalent to Linear, Phantom, and ElevenLabs; enterprise capital corporations; e-commerce firms; and a spread of small companies.
Mercury launched its first company bank card in 2022. Final Might, Mercury informed Fintech that it was layering software program onto its financial institution accounts, giving its enterprise clients the power to pay payments, bill clients, and reimburse staff. These further options put the corporate in much more direct competitors with the likes of Brex and Ramp, two rival fintechs which have for years been preventing for market share in an more and more crowded house.
Later this yr, Mercury plans to launch a shopper banking product that it first introduced in April 2024.
Mercury might be eyeing acquisitions with its new capital, Akhund mentioned. It would even be hiring. Presently, Mercury has 850 staff with plans to develop to greater than 1,000 in 2025.
The startup was embroiled in drama with accomplice financial institution Evolve Financial institution & Belief and embattled BaaS startup Synapse in recent times. On March 12, Mercury introduced that it had determined to finish its relationship with Evolve and migrate clients to its different financial institution companions. Akhund informed Fintech that Mercury had stopped sending new clients to Evolve in 2022.
Mercury’s Sequence C elevate is believed to be the most important fintech funding spherical introduced this yr, one which can also be seeing Klarna put together to go public.
Reporter’s observe: This text was up to date post-publication with further info and feedback from Mercury’s CEO.
