Mercury Raises $300 Million, Surpassing $3.5 Billion Valuation
The digital banking startup Mercury has secured $300 million in both primary and secondary funding, elevating its post-money valuation to an impressive $3.5 billion, the company confirmed.
Significant Fundraising Milestone
This latest funding round has more than doubled Mercury’s valuation from its previous funding round, where it raised $120 million in a Series B funding in 2021, achieving a valuation of $1.62 billion.
Investors and Funding Details
Sequoia Capital led the Series C funding round, joined by existing investors such as CRV and Andreessen Horowitz, along with new participants Spark Capital and Marathon. This marks Sequoia’s first investment in Mercury since its inception in 2017. The recent funding has brought the total capital raised by Mercury to $500 million.
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Impressive Growth Metrics
Mercury’s CEO and co-founder, Immad Akhund, shared that the startup anticipates reaching $500 million in revenue by 2024. The company has reported 10 consecutive quarters of profitability in both EBITDA and GAAP net income. With over 200,000 businesses as clients, Mercury has experienced a remarkable 40% growth in its customer base.
Innovative Products and Competition
In 2022, Mercury launched its first business credit card and introduced software tools that enable clients to pay invoices, generate invoices for customers, and reimburse employees seamlessly. These features position Mercury as a formidable competitor against established fintech players like Brex and Ramp.
Future Plans and Expansion
Mercury has plans to launch a public banking product later in 2024, which was first announced in April. Akhund indicated intentions to explore acquisitions with the newly raised capital and to expand the workforce, aiming to increase their employee count from 850 to over 1,000 by 2025.
Challenges and Changes in Partnerships
Recently, Mercury faced challenges with their partner bank, Evolve Bank & Trust. On March 12, the company announced its decision to end its partnership with Evolve and transition customers to other banking partners. Akhund disclosed that they halted onboarding new clients with Evolve back in 2022.