• Mercury raised $300 million in a Series C round led by Sequoia, doubling its valuation to $3.5 billion.
  • The company reported $500 million in revenue for 2024 and has seen ten consecutive quarters of profitability.

Digital banking startup Mercury has raised $300 million in a Series C round, propelling its valuation to $3.5 billion—more than double its previous valuation of $1.62 billion in 2021.

The round was led by Sequoia, marking its first investment in Mercury, with participation from Coatue, CRV, Andreessen Horowitz, Spark Capital, and Marathon.

With this latest round, Mercury’s total primary and secondary funding now stands at $500 million. While the company did not disclose exact figures, CEO and co-founder Immad Akhund confirmed that the “majority” of the Series C was primary funding. A broader employee tender offer is planned for a later date.

Mercury has seen significant growth, reporting $500 million in revenue in 2024 alongside ten consecutive quarters of profitability on both EBITDA and GAAP net income.

The startup serves over 200,000 businesses, with 40% year-over-year customer growth. Its payment volume surged 64% to $156 billion. Mercury’s clientele includes tech firms such as Linear, Phantom, and ElevenLabs, alongside venture capital firms, e-commerce companies, and small businesses.

Since launching its corporate credit card in 2022, Mercury has continued enhancing its product suite. In May 2023, it introduced software integrations for business accounts, enabling bill payments, invoicing, and employee reimbursements. The company is set to launch a consumer banking product later this year.

Future Plans and Industry Positioning

With its new capital, Mercury is eyeing acquisitions and expanding its workforce from 850 to over 1,000 employees in 2025. The startup recently severed ties with Evolve Bank & Trust following past issues with BaaS provider Synapse, migrating customers to other banking partners.

The Series C round is one of the largest fintech funding deals of the year, as the industry watches Klarna’s anticipated public offering.

Edited by Harshajit Sarmah