Digital banking startup Mercury has raised $200 million in a Series D funding round at a $5.2 billion valuation, the company announced Wednesday. This marks a 49% increase from its $3.5 billion valuation during its $300 million Series C round in March 2025. The fresh capital brings Mercury’s total funding to approximately $700 million since its founding in 2017, according to news.crunchbase.com.
The latest financing was led by TCV and included participation from returning investors such as Andreessen Horowitz, Coatue, CRV, Sequoia Capital, Sapphire Ventures, and Spark Capital. Mercury, based in San Francisco, serves over 300,000 companies, including startups and larger firms like Supabase, ElevenLabs, Lovable, Linear, Phantom, and Tempo. The company recently received conditional approval from the Office of the Comptroller of the Currency (OCC) to establish its own bank, distinguishing it from many fintech firms that operate through sponsor banks.
This funding round and valuation increase highlight the growing investor confidence in fintech companies that combine banking services with technology innovation. Mercury’s achievement of $650 million in annualized revenue by Q3 2025 and four consecutive years of profitability on both GAAP net income and EBITDA bases underscore its strong financial performance. The company’s move toward becoming a fully chartered bank reflects a broader trend in fintech toward greater regulatory control and operational independence.
Looking ahead, Mercury plans to leverage this capital to expand its banking services and scale its platform further. The conditional OCC approval positions Mercury to deepen its market presence as a direct bank, potentially accelerating growth and innovation in digital banking for startups and larger enterprises alike, news.crunchbase.com reports.