News Summary

Digital banking startup Mercury has successfully raised $300 million in a Series C funding round led by Sequoia Capital, bringing its valuation to $3.5 billion. This marks a significant increase from its previous valuation of $1.62 billion in 2021. The funding round also saw participation from existing investors such as Coatue, CRV, Andreessen Horowitz, and new investors including Spark Capital and Marathon. With this infusion of capital, Mercury plans to expand its product offerings, including launching a consumer banking product and making strategic acquisitions. The startup, which serves over 200,000 companies, has experienced substantial growth, noting a 40% year-over-year increase in customer base and a 64% rise in payment volume to $156 billion. Mercury currently employs 850 people and has plans to increase its workforce to over 1,000 by 2025. The company has also announced the termination of its relationship with Evolve Bank & Trust, transitioning its customers to other bank partners.