Mercury closes $300m Series C as profitability surges and valuation soars to $3.5bn

Mercury, a rising force in the fintech ecosystem, has secured $300 million in Series C funding, pushing its valuation to an impressive $3.5 billion. This latest round, led by new investor Sequoia Capital alongside returning backers including Andreessen Horowitz, Coatue, and CRV, marks a turning point for the fintech banking platform. The capital infusion not only validates Mercury’s decade-long strategy but also highlights growing investor appetite for fintechs that have cracked the elusive code of profitability.

What makes this announcement particularly compelling is Mercury’s simultaneous disclosure of key financial metrics: ten straight quarters of profitability on both EBITDA and GAAP bases, $500 million in annual revenue for 2024, and a 64% year-on-year surge in transaction volume to $156 billion. These figures reflect a fintech banking platform that has moved beyond early-stage momentum into full-scale operational maturity.

The Mercury Series C funding round is more than just another startup success story—it signals a shifting dynamic in business banking where software-led platforms are challenging traditional financial institutions by delivering integrated, user-focused financial solutions.

What has powered Mercury’s rise as a fintech banking platform?

Founded in 2017, Mercury emerged from a simple but profound observation: that business banking tools were fragmented, outdated, and inefficient for startups. Traditional banks were unable to meet the demands of fast-scaling companies needing both intuitive interfaces and deep financial capabilities. Mercury’s approach combined the functions of a bank account, corporate credit card, bill payment software, and financial reporting into a single cohesive platform. This all-in-one model created a seamless experience for businesses navigating payroll, tax management, accounts payable, and cash flow forecasting.

The company initially gained traction with startups and small businesses frustrated by legacy banking systems. Over time, Mercury evolved its fintech banking platform to appeal to a broader clientele, including venture capital firms and e-commerce businesses. Its expansion into tools like invoicing and automated accounting reinforced its role as a complete business financial software solution. In 2022, it introduced a corporate credit card, which quickly became the most-used financial product within its customer base.

In 2024, Mercury launched Mercury Personal, a consumer-facing extension of its core offering. Though still early in its adoption, this move suggests the company is exploring new market segments beyond its foundational customer base.

How does Mercury’s performance compare with fintech peers?

In an industry reeling from rising interest rates, tightened capital flows, and regulatory scrutiny, Mercury has emerged as one of the few fintech companies delivering sustained profitability. Over the past year, several neobanks and challenger banks have either scaled back operations or failed to raise capital at previous valuations. In contrast, the Mercury Series C round not only doubled its valuation from $1.6 billion in 2021 to $3.5 billion in 2025 but did so while reporting strong operational fundamentals.

The company’s ability to achieve profitability over ten consecutive quarters is particularly noteworthy. For context, most fintech startups operate at a loss for extended periods, relying on venture funding to support growth. Mercury’s break from this pattern makes it an outlier and positions it as a role model in a maturing fintech market. Its $500 million in annual revenue represents a clear indicator of scalability, and the $156 billion in annual transaction volume shows that customers are deeply embedded within its ecosystem.

This performance has made Mercury a magnet for both new and returning investors. Sequoia Capital, which led the Series C round, cited Mercury’s potential to become a generational company at the crossroads of software and financial services. Coatue, which led the company’s Series B, returned for the latest round, reinforcing confidence in Mercury’s long-term strategy.

What is the strategic importance of Mercury’s board expansion?

With ambitions to scale even further, Mercury has added several high-profile members to its board. The most notable is Tim Mayopoulos, the veteran banking executive tapped by the Federal Deposit Insurance Corporation (FDIC) to stabilise Silicon Valley Bridge Bank following the collapse of Silicon Valley Bank in 2023. His appointment reflects Mercury’s growing prominence in the startup banking sector and suggests a desire to bolster its governance and regulatory expertise.

Mayopoulos previously led Fannie Mae’s recovery after the 2008 financial crisis and served as general counsel at Bank of America. His experience navigating systemic financial risk adds depth to Mercury’s board at a time when regulators are closely watching the fintech space. According to Mayopoulos, Mercury is stepping in to serve entrepreneurs and tech firms that were previously reliant on Silicon Valley Bank, and in doing so, it is reshaping the role of banking in innovation-driven sectors.

Joining him is Tom Brown, a legal expert who has advised several major fintechs including PayPal and Chime. Brown brings valuable insight into regulatory compliance and financial infrastructure—a critical asset as Mercury expands its offerings and enters new markets.

Together, these appointments signal a deliberate move by Mercury to prepare for its next phase—whether that involves new product lines, deeper regulatory engagement, or even a future public listing.

How does Mercury plan to use its Series C capital?

Immad Akhund, Mercury’s co-founder and CEO, stated that the $300 million raised would be used to pursue product innovation, explore acquisitions, and ensure long-term financial flexibility. With a strong balance sheet already in place, this funding gives the fintech banking platform additional leverage to move swiftly as new market opportunities emerge.

Akhund believes that a core banking product can serve as the backbone of all business financial activity—from payroll and taxes to expense tracking and growth forecasting. By owning this central infrastructure, Mercury can continue to build software tools around it, enhancing user retention and increasing product stickiness.

Industry analysts see this approach as a competitive advantage. While traditional banks focus on segmented services, Mercury’s business financial software offers an integrated experience designed to adapt to evolving business needs. The Mercury Series C funding round gives the company the capital it needs to invest in R&D while also signalling to the market that it has long-term ambitions beyond serving startups.

Can Mercury become a category-defining fintech?

Mercury’s ability to maintain a strong customer growth rate, expand its product suite, and remain profitable gives it a compelling claim to leadership in the fintech banking platform space. Its strategic focus on building tools around a unified bank account experience sets it apart from neobanks that rely heavily on third-party integrations. Instead, Mercury controls the core infrastructure and has full ownership of its product roadmap.

With over 200,000 businesses already onboard, its network effects are growing stronger. Startups like Linear and Phantom, as well as e-commerce firms like Cocolab, rely on Mercury’s platform to run their financial operations. This customer diversity increases Mercury’s resilience to sector-specific downturns and positions it as a robust platform ready for broader enterprise adoption.

By balancing growth with financial discipline, the company is drawing favourable comparisons to larger fintech players that eventually transitioned into public companies. Should Mercury continue on its current trajectory, an IPO in the next two to three years would not be surprising. However, the company’s leadership has not publicly commented on any listing plans.

The Mercury Series C round provides ample capital and a strategic mandate to deepen its position in the market. For investors and industry watchers alike, the focus now shifts to how the company will execute over the next 12 to 24 months. If it can maintain profitability while scaling into new verticals, Mercury may well become the next cornerstone player in digital finance.