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The San Francisco-based fintech firm, which provides banking services to startups and early-stage businesses, has raised $200 million in a Series D funding round at a $5.2 billion valuation, CNBC has learned exclusively. That figure represents a 49% jump from its previous round just 14 months ago, a striking leap at a time when much of the fintech sector remains in a prolonged slump.
The round was led by venture firm TCV, known for backing fintech heavyweights including Revolut and Nubank, with participation from existing investors Sequoia Capital, Andreessen Horowitz and Coatue.
Mercury CEO Immad Akhund told CNBC the company has been profitable for four consecutive years and hit $650 million in annualized revenue in the third quarter, serving more than 300,000 customers, including roughly one in three early-stage U.S. startups.
The surge in new business formation driven by generative AI has been a significant tailwind for Mercury, which opens accounts for companies at their earliest stage.
"We've seen a lot of growth, especially recently, and a lot of that comes down to AI being a big enabler for entrepreneurship," Akhund said. "We're seeing a lot of people doing AI startups, but also non-AI companies where they're using AI to build an app really easily or build products and websites really quickly."
The fundraising arrives weeks after Mercury received conditional approval from the Office of the Comptroller of the Currency to become a fully chartered federal bank, a milestone that would allow it to offer expanded lending products, join the Zelle instant payments network and reduce its dependence on partner banks Column and Choice Financial. Final approval is expected as early as 2027.
Mercury recently launched AI-powered tools allowing businesses to manage their accounts through conversational interfaces, with a broader AI finance platform planned for later this year.
Akhund said he has no interest in selling the company and ultimately wants to take Mercury public.
"I really want to build a strong independent brand," he said.
