Mercury, a provider of banking services for enterepreneurs and the tech industry, has secured $300 million in Series C funding at a $3.5 billion valuation.
The round, led by new investor Sequoia Capital, includes primary and secondary funding and more than double Mercury's previous Series B valuation of $1.6 billion in 2021. Other new investors include Spark Capital and Marathon as well as participation from existing investors Coatue, CRV, and Andreessen Horowitz.
The company, which has a client base of more than 200,000 companies, has reported ten consecutive quarters of profitiability and revenue of $500 million in 2024. Annual transaction volume stands at $156 billion, up 64% over the year.
Immad Akhund, co-founder and CEO of Mercury, says: “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.”
The foundation of Mercury’s product is a bank account providing payroll, accounts receivable and payable, credit cards, taxes, financial reporting, cash flow forecasting, and other financial workflows.
In 2024, 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 is a disruptive company with a bold vision for the future of banking,” said Sonya Huang, partner, Sequoia Capital. “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.”
Mercury is also 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, after Silicon Valley Bank’s collapse in 2023.
“Through my work on the SVB collapse, I became acutely aware of the importance of banking options that serve entrepreneurs and the tech community,” says Mayopoulos. “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.”