Digital banking startup Mercury has just pulled in $300 million in a fresh round of funding, pushing its post-money valuation to $3.5 billion. More than double what it was just a few years ago. The Series C round, which includes both primary and secondary funding, is Mercury’s largest raise to date and marks a milestone moment for the 2017-founded company.
The round was led by Sequoia Capital, which invested in Mercury for the first time. It was joined by a lineup of returning investors like Coatue, Andreessen Horowitz, CRV, and new backers including Spark Capital and Marathon. This latest injection brings Mercury’s total raised to $500 million. While exact details weren’t disclosed, CEO and co-founder Immad Akhund confirmed that the majority of this round was primary capital.
Unlike many fintechs navigating a tough market, Mercury is thriving. The company generated a staggering $500 million in revenue in 2024. And has remained profitable for 10 straight quarters—on both EBITDA and GAAP net income. This profitability streak makes Mercury a rare standout in a space where many digital-first financial startups are still burning cash.
Today, Mercury serves more than 200,000 businesses. That’s a 40% year-over-year customer increase, with companies ranging from fast-growing startups like ElevenLabs and Linear to venture firms and e-commerce sellers. Its payment volume also spiked 64%, hitting $156 billion.
While Mercury made its name by offering sleek. Startup-friendly business bank accounts, it’s been rapidly evolving into a full-stack financial platform. In 2022, it launched a corporate credit card. Then in 2023, it added tools like bill pay, invoicing, and employee reimbursements. Features that now put it in more direct competition with rivals like Brex and Ramp.
The competition is only heating up. Mercury plans to roll out a consumer banking product later this year, marking its first serious push beyond business banking. At the same time, it’s preparing for major growth. The company currently has 850 employees, with plans to expand headcount to over 1,000 in 2025. Acquisitions are also on the table, Akhund confirmed.
This Series C funding round is also notable for its timing. As other fintechs like Klarna gear up for IPOs, Mercury’s continued profitability and strong growth metrics suggest it may be positioning itself for an even larger move down the road.
However, not everything has been smooth sailing. Mercury recently ended its partnership with Evolve Bank & Trust, following a rocky few years involving Banking-as-a-Service provider Synapse. Akhund said the company stopped directing new customers to Evolve in 2022 and is now transitioning users to its other partner banks.
Still, the momentum behind Mercury is undeniable. With a strong revenue base, robust customer growth, and a sharpened focus on expansion, the digital banking startup is charting a bold course through a turbulent fintech landscape—and showing that profitability and growth don’t have to be mutually exclusive.
