Mercury Doubles Valuation to 3.5 Billion with 300 Million Series C

When Immad Akhund, Jason Zhang and Max Tagher founded Mercury in 2019, the goal was straightforward, which was to build a banking platform that actually works for startups. Traditional banks weren’t designed for tech founders who needed automated cash flow management, seamless integrations, and financial tools built for high-growth businesses. Akhund, who previously co-founded Heyzap and sold it for $45 million, knew firsthand how frustrating startup banking could be. Instead of waiting for a solution, he built one himself.

Now, Mercury has become a go-to banking partner for startups, processing over $156 billion in annual transactions, a 64% increase from the previous year. The company boasts over 200,000 business customers, spanning tech startups, e-commerce brands, venture capital firms, and more. Its recent $300 million Series C funding round, led by Sequoia Capital, doubled its valuation to $3.5 billion, with participation from Spark Capital, Coatue, CRV, Andreessen Horowitz, and Marathon.

Scaling with Software-Driven Banking

Unlike many fintech companies that burn through capital to acquire customers, Mercury has taken a more measured, profitability-first approach. The company has consistently expanded its product lineup while keeping customer acquisition costs low, focusing on organic growth and word-of-mouth referrals rather than aggressive marketing.

A key driver of its growth has been its automated treasury management tools, including Mercury Treasury, launched in 2023. This offering became particularly relevant following the collapse of Silicon Valley Bank (SVB), when Mercury swiftly stepped in to help startups move and safeguard their funds. The company expanded its sweep network to distribute deposits across multiple partner banks, reducing risk for customers holding large cash reserves.

Another major move was Mercury Venture Debt, introduced to provide startups with non-dilutive capital at competitive rates. It became a financial partner for early-stage companies looking to extend their runway without giving up equity.

The company also rolled out Mercury IO, its corporate credit card, designed for startups needing high credit limits without personal guarantees. Unlike many competitors, Mercury’s underwriting model considers a startup’s financial health, revenue trends, and investor backing, making it more accessible to growing companies.

IPO Prospects

Unlike many fintechs that burn through cash to acquire customers, Mercury has been profitable for 10 consecutive quarters on both EBITDA and GAAP net income. Mercury serves over 200,000 businesses, from high-growth startups to bootstrapped e-commerce brands and even venture capital firms. It reported $500 million in annual revenue in 2024. But Akhund believes that “Startups should focus on building great products—not worrying about where to put their money.”

Mercury plans to expand its product lineup, scale hiring, and potentially explore acquisitions. While an IPO hasn’t been officially announced, its consistent profitability and growing valuation make it a strong candidate for a public debut in the next few years.

For Akhund, the mission remains clear which is to build the best banking experience for startups, period. Reflecting on the company’s growth, he said, “Mercury began with the vision that banking should do more than safely hold money – it should bring all the ways people and businesses use money into a single product that feels extraordinary to use.”