Mercury Raises $200 Million at $5.2 Billion Valuation as Bank Charter Nears
Updated
Updated · CNBC · May 20
Mercury Raises $200 Million at $5.2 Billion Valuation as Bank Charter Nears
1 articles · Updated · CNBC · May 20
$200 million in new Series D funding values Mercury at $5.2 billion, a 49% jump in 14 months despite a broader fintech slump.
TCV led the round with Sequoia, Andreessen Horowitz and Coatue participating after Mercury posted four straight profitable years, more than 300,000 customers and $650 million in annualized revenue.
Conditional OCC approval for a federal bank charter, disclosed weeks ago, could let Mercury keep more revenue, expand lending, join Zelle and rely less on partner banks Column and Choice Financial.
AI-driven startup formation has boosted Mercury's core customer base, and the company is rolling out AI tools for account access now with a broader conversational finance interface planned later this year.
The push into direct regulation follows industry strains exposed by Synapse's collapse and Mercury's gains after Silicon Valley Bank failed in 2023, as CEO Immad Akhund says he aims for an eventual IPO rather than a sale.
Mercury's valuation defied a downturn, but can it survive the transformation from a nimble fintech into a regulated bank?
With a $5.2B valuation fueled by AI, will a bank charter unleash Mercury's potential or bury it in red tape?