Digital banking startup Mercury has raised $300 million in main 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 newest spherical — a Collection C — alongside present backers Coatue, CRV, Andreessen Horowitz, and new traders Spark Capital and Marathon. It’s the primary verify that Sequoia has written into Mercury for the reason that startup was based in 2017. The increase brings Mercury’s complete main and secondary funding to $500 million. The corporate declined to interrupt down how a lot of the Collection C was main and the way a lot was secondary with Mercury CEO and co-founder Immad Akhund saying the “majority” was main.
Mercury is planning on doing a broader worker tender provide at a later date, he added.
Akhund additionally 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 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 cost quantity elevated by 64% to $156 billion. Its clients vary in measurement, in response to Akhund, and embody tech corporations similar 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 staff. 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.
Later this 12 months, Mercury plans to launch a shopper banking product that it first introduced in April 2024.
Mercury will probably 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 associate financial institution Evolve Financial institution & Belief and embattled BaaS startup Synapse lately. 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 advised TechCrunch that Mercury had stopped sending new clients to Evolve in 2022.
Mercury’s Collection C increase is believed to be the most important fintech funding spherical introduced this 12 months, one which can be seeing Klarna put together to go public.
Reporter’s be aware: This text was up to date post-publication with extra data and feedback from Mercury’s CEO.
