Digital Banking Startup Mercury Raises $300 Million in Investment, Doubles Valuation to $3.5 Billion
Digital banking startup Mercury has announced raising $300 million in a new investment round, bringing the company's valuation to $3.5 billion. This valuation is more than double the previous valuation, which was $1.62 billion in 2021.
The investment round was led by the well-known Sequoia Capital, with additional participation from investors such as Coatue, CRV, Andreessen Horowitz, Spark Capital, and Marathon. Sequoia has been investing in Mercury since its founding in 2017. Overall, Mercury has raised a total of $500 million in investment.
Mercury's CEO and co-founder, Immad Akhund, stated that the company achieved $500 million in revenue in 2024 and has shown consecutive profitability for 10 quarters. The company currently serves over 200,000 customers, with a 40% year-over-year growth in customer numbers.
In 2022, Mercury launched its first corporate credit card and also provides a range of additional services to its business clients. These offerings have enabled the company to compete more directly with rivals like Brex and Ramp. Furthermore, Mercury plans to launch a consumer banking product in April 2024.
With the new investment, Mercury plans to hire more employees and pursue acquisitions. The company currently employs 850 people and aims to expand this number to over 1,000 by 2025.
Mercury has also ended its partnership with Evolve Bank & Trust and has begun migrating customers to other bank partners. This decision started to take effect in 2022.
