Digital banking startup Mercury has raised $300 million in primary and secondary funding at a $3.5 billion post-money valuation, the company confirmed to TechCrunch on Wednesday.
Sequoia led the Series C round alongside existing investors Coatue, CRV, Andreessen Horowitz, and new backers Spark Capital and Marathon. This marks the first time Sequoia has invested in Mercury since its founding in 2017. The new raise brings Mercury’s total primary and secondary funding to $500 million. While Mercury did not disclose the exact split between primary and secondary funding, CEO and co-founder Immad Akhund stated that the “majority” was primary.
Mercury reported $500 million in revenue for 2024 and has maintained profitability for 10 consecutive quarters on both EBITDA and GAAP net income metrics.
The company serves over 200,000 businesses and has experienced 40% year-over-year customer growth. Akhund did not disclose previous revenue figures but shared that Mercury’s payment volume grew by 64% to reach $156 billion. Its diverse clientele includes tech firms like Linear, Phantom, and ElevenLabs, as well as venture capital firms, e-commerce businesses, and various small enterprises.
Expanding Offerings and Competitive Landscape
Mercury introduced its first corporate credit card in 2022. In May 2024, the company added software features to its banking platform, enabling businesses to handle bill payments, invoicing, and employee reimbursements. These enhancements further position Mercury against fintech competitors Brex and Ramp in the race for market dominance.
The company is also preparing to launch a consumer banking product later this year, an initiative first announced in April 2024.
Future Plans and Industry Challenges
Mercury plans to use its new capital for acquisitions and workforce expansion. Currently employing 850 people, the company aims to surpass 1,000 employees by the end of 2025.
In recent years, Mercury has navigated challenges with its partner bank Evolve Bank & Trust and troubled Banking-as-a-Service (BaaS) provider Synapse. On March 12, the company announced it was severing ties with Evolve and transitioning customers to other banking partners. Mercury had already stopped onboarding new customers through Evolve in 2022.
Mercury’s Series C round is one of the largest fintech funding deals of 2025, amid a financial landscape that includes Klarna’s preparations for an IPO.
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