Mercury, the fintech platform companies use for banking, credit cards, and software to power all their financial workflows, announced a $300 million Series C investment round from existing and new investors. The funding round, led by new investor Sequoia Capital, includes primary and secondary funding and values Mercury at $3.5 billion post-money, more than double its previous Series B valuation of $1.6 billion in 2021. Other new investors include Spark Capital and Marathon and participation from existing investors Coatue, CRV, and Andreessen Horowitz.
Mercury’s execution of that vision has driven profitability and growth for the company. For the first time, Mercury is announcing key financial and growth milestones, including:
— 10 consecutive quarters of profitability based on both EBITDA and GAAP net income
— $500 million in revenue last year
— 40% growth in customers year-over-year
— $156 billion in annual transaction volume, up 64% year-over-year
The foundation of Mercury’s product is a sophisticated bank account. Bank accounts are the center of business finance: payroll, accounts receivable and payable, credit cards, taxes, financial reporting, cash flow forecasting, and many other critical workflows start and end with the bank account. Mercury believes that when businesses manage their finances through a single product built from a powerful bank account, they can operate at their best and focus on what matters most: building a successful company.
Since the company’s Series B in 2021, Mercury has taken significant steps toward its vision that banking should do more than safely hold money. After introducing its first corporate credit card in 2022, it has now become the most used corporate card among Mercury customers. Last year, Mercury launched financial software to help businesses pay bills, send invoices, automate accounting, and manage employee expenses. It also expanded into the consumer space with the launch of Mercury Personal.
Mercury serves over 200,000 ambitious companies across a variety of industries – from tech startups like Linear, Phantom, and ElevenLabs to venture capital firms, e-commerce companies like Cocolab and Bogey Bros, and a range of small businesses – who rely on Mercury to operate at their best.
Mercury also announced it is expanding its board of directors with four new members, including Tim Mayopoulos, the financial services executive and lawyer appointed by the FDIC to lead Silicon Valley Bridge Bank, N.A., after Silicon Valley Bank’s collapse in 2023.
When the FDIC took over SVB, they needed a seasoned leader to stabilize operations and appointed Mayopoulos as President and CEO of the bridge bank until they sold most of the bank’s assets. His selection was unsurprising given his decades of experience leading major financial institutions and navigating financial crises. And he led Fannie Mae’s recovery from the financial crisis as President and CEO from 2012 to 2018, previously served as general counsel at Bank of America, and currently sits on the boards of LendingClub, Blend Labs, and SAIC.
Along with Mayopoulos, the following new directors join Immad Akhund and Saar Gur of CRV, as well as board observers Alex Rampell of Andreessen Horowitz, and Dan Rose of Coatue, to help guide Mercury through its next phase of growth and beyond:
— Tom Brown started his career defending Visa from antitrust attack and went in-house. Over the last 15 years, he has advised and invested in firms at the intersection between financial services and technology, including PayPal, Upstart, and Chime. He is a recognized expert on the legal and regulatory framework for banking and payments.
— Sonya Huang is a partner at Sequoia, where she partners with companies across a range of industries, including AI, enterprise software, data infrastructure, and fintech. She works closely with companies including Cribl, dbt Labs, Fireworks, Gong, LangChain, OpenAI, and more. Prior to joining Sequoia, she worked in investment banking at Goldman Sachs and private equity at TPG.
— Jason Zhang is the co-founder and chief operating officer at Mercury. As COO, Zhang is the driving force behind Mercury’s product vision, design and development, product experience, and company culture. Prior to co-founding Mercury, Zhang served as VP of Business Development at Heyzap, where he met Mercury’s co-founders Immad Akhund and Max Tagher.
KEY QUOTES:
“Mercury began with the vision that banking should do more than safely hold money – it should bring all the ways people and businesses use money into a single product that feels extraordinary to use.”
“We’ve continued to increase our profitability while maintaining a strong balance sheet. This round is about seizing the opportunities ahead for our next phase of growth, including driving innovation with new products, exploring acquisitions, and ensuring long-term financial flexibility.”
- Immad Akhund, co-founder and CEO of Mercury
“Mercury is a disruptive company with a bold vision for the future of banking. It has been synonymous with banking for startups, but Mercury is built for nearly every business and is a real competitor to legacy banks. With its track record of profitability, innovation, operational excellence, and clear vision for what banking can become, I believe that Mercury has a chance to be a generational company at the intersection of financial services and software.”
- Sonya Huang, partner, Sequoia Capital
“After helping build Amazon and Facebook, I recognize the hallmarks of transformative companies – and Mercury is one of them. The founders have a bold vision, a deep obsession with their customers, and a relentless drive to innovate. I’m incredibly impressed by what they’ve accomplished and excited about Mercury’s potential to reimagine what banking can be.”
- Dan Rose of Coatue, which led Mercury’s Series B and is now doubling down with another major investment
“Through my work on the SVB collapse, I became acutely aware of the importance of banking options that serve entrepreneurs and the tech community. Mercury has stepped up to not only fill the gap left by SVB in banking for startups, but to redefine banking for founders of all kinds of ambitious companies. I’m excited to help guide Mercury as it continues to challenge what banking can do, including expanding its offerings and who it serves.”
- Tim Mayopoulos
