Digital banking startup Mercury has raised $300 million in primary and secondary funding with a $3.5 billion money post money valuation, the company confirmed Wednesday with TechCrunch.
The valuation is more than twice the startup’s valuation when it ultimately raised capital, and it valued the company after $1.62 billion in the 2021 $120 million Series B round.
Sequoia led the latest round (Series C) alongside existing backers Coatue, CRV, Andreessen Horowitz and new investors Spark Capital and Marathon. This is the first check written by Sequoia since the startup was founded in 2017. RaiseThe Rais brings Mercury’s total primary and secondary funds to $500 million. The company refused to break down whether it is the Series C primary and whether it is the secondary of Mercury CEO and co-founder Immad Akhund, whom the “majority” said to be the primary.
He added that Mercury is planning a tender offer for a wider range of employees at a later date.
Akhund also told TechCrunch that Startup had $500 million in revenue in 2024, showing 10 quarters of profitability in both EBITDA and GAAP net income.
The company counts more than 200,000 companies as its customers, claiming it has seen a 40% customer growth compared to the previous year. Akhund refused to share revenue figures over the past few years, but said its payment volume has increased by 64% to $156 billion. According to Akhund, its customers are in the size range and include high-tech companies such as Linear, Phantom and ElevenLabs. Venture capital farm. E-commerce company. And a variety of small and medium-sized businesses.
Mercury launched its first corporate credit card in 2022. Last May, Mercury informed TechCrunch that it was tiered to a bank account, providing business customers with the ability to pay bills, bill customers, and refund employees. These additional features put the company in even more direct competition with two rival fintechs, Brex and Ramp, who have fought for market share in increasingly busy spaces.
Later this year, Mercury will launch its first consumer banking product in April 2024.
Akhund said Mercury is looking at the acquisition in the new capital. Employment will also be carried out. Currently, Mercury has 850 employees and plans to grow to over 1,000 by 2025.
The startup has been caught up in a drama with partner bank Evolve Bank & Trust and has been caught up in Baas’ startup synapses in recent years. On March 12, Mercury announced it had decided to end its relationship with Evolve and move its customers to another bank partner. Akhund told TechCrunch that Mercury stopped sending new customers in 2022.
Mercury’s Series C Rays is considered to be the biggest Fintech funding round announced this year.
Reporter’s Note: This article was updated after publication with additional information and comments from Mercury CEO.
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