Mercury has secured $200 million in new funding and received regulatory approval to launch its own bank, marking a major milestone for the digital banking startup. The Series D round values the company at $5.2 billion, a 49% jump from its March 2025 valuation of $3.5 billion.

Investors Back Mercury’s Growth

TCV led the round with participation from existing backers including Andreessen Horowitz, Coatue, CRV, Sequoia Capital, Sapphire Ventures and Spark Capital. The latest raise brings Mercury's total primary and secondary funding to roughly $700 million since its founding in 2017.

The company now serves more than 300,000 businesses, ranging from early-stage startups to established names such as Supabase, ElevenLabs, Linear and Phantom.

Financial Performance and Banking Ambitions

Mercury reported $650 million in annualized revenue as of the third quarter of 2025. The company claims it has been profitable on both a GAAP net income and EBITDA basis for four consecutive years.

In a notable departure from most fintech firms, Mercury recently received conditional approval from the Office of the Comptroller of the Currency to establish its own national bank. The move would reduce reliance on third-party sponsor banks and give Mercury direct control over deposits and lending.

CEO Immad Akhund framed the bank charter as part of a broader mission. “AI is collapsing the friction between an idea and a company faster than anything I have seen in my career,” he said in a statement. “We are going to see more founders in the next five years than in the last twenty. But legacy banking in 2026 still works the way it did when I started my first company in 2006.”

Why This Matters

Mercury’s expansion comes at a time when fintech funding is rebounding. Global venture capital investment in financial technology reached $53.8 billion in 2025, up more than 29% from the prior year. Mercury’s ability to secure a large round and a banking license signals growing confidence in digital banking models that target startups and small businesses.

The OCC approval, if finalized, would allow Mercury to offer banking services directly rather than through a partner bank. That could lower costs, speed up product development and give Mercury a competitive edge over other fintechs that still depend on traditional bank partnerships. For founders and small business owners, a bank designed specifically for their needs may soon offer more than just checking accounts and payment processing.