Mercury, the San Francisco-based fintech offering digital banking services for startups and SMBs, has raised $300 million in a Series C round, more than doubling its valuation to $3.5 billion. The round was led by Sequoia Capital, with participation from Andreessen Horowitz, Coatue, and other existing investors. This brings Mercury’s total funding to over $500 million since its inception.
The fintech plans to use the fresh capital to fuel product innovation, expand its range of financial offerings, and strengthen its core infrastructure to support a rapidly growing user base. Part of the funding will be directed toward enhancing its AI capabilities, improving fraud detection, and introducing advanced treasury management tools.
It also aims to expand its global footprint, catering to more international clients while refining its compliance and regulatory processes.
Immigrant founder shaping fintech’s future
Mercury was founded in 2017 by Immad Akhund, along with co-founders Max Tagher, Jason Zhang, and Nishad Jadhav.
Akhund, who serves as Mercury’s CEO, has had a remarkable entrepreneurial journey. Before Mercury, he was the CEO and co-founder of Heyzap, a mobile developer tools company that was acquired for $45 million in 2016. Originally from Pakistan, Akhund is one of the most prominent immigrant founders in Silicon Valley, exemplifying diversity in leadership.
Beyond his role at Mercury, Akhund is an active angel investor, having backed over 100 seed-stage startups, including notable names like Airtable, Substack, and Rappi.
Behind Mercury: banking made seamless for companies
The company provides banking and financial management services for startups and small to medium-sized businesses (SMBs). It offers a suite of products, including business bank accounts, credit cards, treasury management, and payment processing solutions. Its platform integrates seamlessly with accounting and business software, giving founders a comprehensive view of their financial operations. Its intelligent automation helps manage payroll, invoices, and recurring payments while ensuring high-level compliance and security.
Mercury operates in a competitive fintech landscape where companies like Klarna and Plaid pose strong challenges. While Klarna primarily focuses on buy-now-pay-later (BNPL) services, its growing suite of financial tools and services makes it a formidable competitor. Plaid, on the other hand, excels in enabling secure financial data connectivity between banks and apps, providing the backbone for many fintech services.
Mercury distinguishes itself by offering a more tailored banking experience for startups, integrating a wide range of features under one platform, and building deep relationships with tech entrepreneurs.
Other competitors include Brex, which targets a similar segment of venture-backed startups, and Ramp, a corporate spend management platform that has gained traction among scaling businesses. Mercury’s competitive edge lies in its robust API-driven infrastructure and focus on founders’ needs, giving it a solid foothold in the startup banking ecosystem.
Is an IPO on the horizon?
While Mercury has not officially announced any IPO plans, its rapid growth trajectory and increased valuation signal that it may be positioning itself for a public offering in the future. The Series C funding round, doubling Mercury’s valuation, reflects strong investor confidence and could be a strategic step toward an IPO. Industry experts speculate that with its strong market position, Mercury could explore an IPO within the next 18 to 24 months.
Following this funding round, Mercury is expected to double down on scaling its operations and expanding its product offerings. The company plans to introduce AI-driven financial insights and enhance its treasury solutions to cater to larger enterprises. It also intends to extend its reach beyond the US, targeting international startups seeking banking solutions aligned with US regulatory standards.
As Mercury strengthens its position in the fintech space, its continued focus on innovation, security, and customer-centric solutions is likely to fuel its growth further. Whether through an eventual IPO or by expanding into new markets, its trajectory suggests it will remain a key player in the evolving financial technology ecosystem.
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