Dive Brief:
- Mercury, a San Francisco fintech startup, has raised $300 million in a new funding round, the company said Wednesday.
- While Sequoia Capital led the company’s latest funding round, new and current investors, including Spark Capital, Marathon Management Partners, Andreessen Horowitz, CRV, and Coatue Management, also participated in the round. The company’s valuation rose to $3.5 billion with the latest capital injection, the release said.
- Last year, Mercury logged $500 million in revenue and increased its annual transaction volume by 64% over 2023 to $156 billion, per the press release.
Dive Insight:
The investment round deepens Mercury’s ties to its investors, including adding some of them as directors. Mercury has placed several new board members, including: Tom Brown, formerly of Visa; Sonya Huang, a partner at Sequoia; Jason Zhang, co-founder and chief operating officer at Mercury; and Tim Mayopoulos, a lawyer appointed to lead Silicon Valley Bridge Bank following its 2023 collapse, the release said.
In recent years, Mercury has introduced its corporate credit card and debuted its financial software, which lets businesses pay bills, send invoices, manage employee expenses and automate their accounting functions, the company said in its recent release.
Mercury has a client set of about 200,000 companies, including tech startups, venture capital funds and other small businesses, per the release. Also, it has posted ten consecutive quarters of probability, the release said.
“We’ve continued to increase our profitability while maintaining a strong balance sheet,” Immad Akhund, co-founder and CEO of Mercury, said in a statement. “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 company previously raised $120 million in 2021 and was valued at $1.62 billion, per a July 2021 company press release. Coatue led that round, and Andreessen Horowitz, CRV and other investors also participated.
