Fintech Mercury lands $300M in Sequoia-led Series C, doubles valuation to $3.5B

Tech Crunch - Mar 26th, 2025

Digital banking startup Mercury has successfully raised $300 million in a Series C funding round, boosting its valuation to $3.5 billion. This latest round, led by Sequoia and including existing investors such as Coatue, CRV, Andreessen Horowitz, and new investors Spark Capital and Marathon, marks a significant leap from its previous $1.62 billion valuation in 2021. The funds will be used for employee tender offers, acquisitions, and hiring, with Mercury planning to expand its workforce from 850 to over 1,000 by 2025. CEO and co-founder Immad Akhund reported $500 million in revenue in 2024 and a remarkable 40% year-over-year customer growth, with over 200,000 companies using its services.

Mercury's funding underscores its competitive position in the fintech sector, particularly as it plans to introduce a consumer banking product later this year to enhance its offerings. The company has been enhancing its digital banking services, introducing features like corporate credit cards and software integrations for business accounts, placing it in direct competition with fintech rivals Brex and Ramp. The raise is reportedly the largest fintech funding round of the year, as the sector continues to evolve with companies like Klarna preparing for public offerings. Mercury's recent decision to sever ties with Evolve Bank & Trust, following issues with Synapse, further highlights the dynamic and sometimes turbulent nature of the fintech landscape.

Sequoia Fintech Funding Mercury Digital Banking Immad Akhund Evolve Bank & Trust Synapse Customer Growth Corporate Credit Card

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RATING

7.8

Fair Story

Consider it well-founded

The article provides a comprehensive overview of Mercury's recent funding and strategic direction, supported by credible sources and clear presentation. Its strengths lie in accuracy, clarity, and timeliness, effectively communicating key developments to an industry-focused audience. However, the story could benefit from additional perspectives and third-party analysis to enhance balance and source quality. While it engages readers with its insights into the fintech sector, its broader public interest and impact are somewhat limited, focusing primarily on industry stakeholders. Overall, the article is a reliable and informative piece for those interested in digital banking and fintech trends.

Accuracy

The story's factual accuracy is strong, with key figures and claims aligning well with known data points. Mercury's $300 million funding round and the $3.5 billion valuation are consistent with industry reports. The involvement of investors like Sequoia Capital and others is also corroborated by external sources. However, the story could benefit from more precise details on the breakdown between primary and secondary funding, as well as verification of the $500 million revenue claim for 2024. The claim of 10 consecutive quarters of profitability is significant and should be supported by financial documents for full accuracy.

Balance

The article presents a balanced perspective on Mercury's achievements and challenges. It highlights the company's financial successes and growth while acknowledging past issues with partner banks. However, it leans more towards a positive portrayal, with less emphasis on potential risks or criticisms, such as the competitive pressures from rivals like Brex and Ramp. Including more viewpoints from industry analysts or competitors could enhance balance.

Clarity

The article is well-structured and clear, with a logical flow that guides the reader through Mercury's recent developments. The language is straightforward, making complex financial information accessible to a general audience. The inclusion of specific figures and direct quotes enhances clarity, though the narrative could benefit from a clearer distinction between past and future events to prevent any potential confusion.

Source quality

The primary source of the story is TechCrunch, a reputable outlet for technology and startup news, which lends credibility. The article includes direct quotes from Mercury's CEO, providing firsthand information. However, the reliance on a single primary source and the absence of third-party verification or analysis from independent experts or financial analysts slightly limits the breadth of source quality.

Transparency

The article is transparent about its sources, primarily relying on statements from Mercury's CEO. It clearly states that the company declined to specify certain financial details, such as the primary vs. secondary funding breakdown. However, it could improve by providing more context on the company's financial health and market position, potentially through external analysis or historical data.