Digital banking startup Mercury has raised $300 million at a $3.5 billion post-money valuation, the corporate confirmed to TechCrunch on Wednesday.
The valuation is greater than double the startup’s valuation when it final raised capital – a $120 million Series B round 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 increase brings Mercury’s whole main and secondary funding to $500 million.
Mercury CEO and co-founder Immad Akhund advised TechCrunch 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 revenue.
The corporate counts over 200,000 corporations as prospects 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 prospects vary in dimension, in line with Akhund, and embody tech corporations akin to Linear, Phantom, and ElevenLabs, enterprise capital companies, e-commerce corporations and a variety of small companies.
Mercury launched its first company bank card in 2022. Final Could, Mercury advised TechCrunch that it was layering software program onto its financial institution accounts, giving its enterprise prospects the flexibility to pay payments, bill prospects and reimburse workers. These extra options put the corporate in much more direct competitors with the likes of Brex and Ramp, two rival fintechs which have for years been combating for market share in an more and more crowded area.
Mercury can be eyeing acquisitions with its new capital, Akhund stated.
The startup was embroiled in drama with companion 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 prospects to its different financial institution companions.
Mercury’s Sequence C increase is believed to be the most important fintech funding spherical introduced this 12 months, one which can also be seeing Klarna put together to go public.