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 TechCrunch on Wednesday.
The valuation is greater than double the startup’s valuation when it final raised capital – a $120 million Collection B spherical in 2021 that valued the corporate at $1.62 billion post-money.
Sequoia led the most recent spherical – a Collection C – alongside current backers Coatue, CRV, Andreessen Horowitz and new buyers 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 major and secondary funding to $500 million. The corporate declined to interrupt down how a lot of the Collection C was major, and the way a lot was secondary.
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 internet earnings.
The corporate counts over 200,000 corporations as clients and claims it has seen 40% year-over-year buyer progress. 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 measurement, in line with Akhund, and embody tech corporations equivalent to Linear, Phantom, and ElevenLabs, enterprise capital companies, e-commerce corporations and a spread 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 clients the power to pay payments, bill clients 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 preventing for market share in an more and more crowded house.
Mercury might be eyeing acquisitions with its new capital, Akhund mentioned.
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.
Mercury’s Collection C increase is believed to be the biggest fintech funding spherical introduced this yr, one which can also be seeing Klarna put together to go public.
