Digital banking startup Mercury has raised $200 million in a Series D funding round, increasing its valuation to $5.2 billion, up from $3.5 billion in its previous round. The company, which serves over 300,000 customers and recently received conditional approval to establish its own bank, is experiencing significant growth, reporting $650 million in annualized revenue and four years of profitability.
Mercury's recent Series D round, led by TCV and involving top venture firms like Andreessen Horowitz and Sequoia Capital, underscores the strong investor interest in fintech startups that leverage AI to streamline banking processes. With a $5.2 billion valuation and conditional approval to establish its own bank, Mercury's trajectory highlights the growing trend of fintech companies moving towards banking independence, offering a potential model for startups aiming to disrupt traditional financial services.