"It's been a real roller coaster," he said. "Fintech was super hot in 2020, 2021, and by the end of 2022, 2023, it was kind of dead...I feel like this year has seen a big resurgence, and so many companies and ideas from the 2020 era have reached significant maturity." Akhund points out that some of 2025's most successful IPOs, from Circle to Chime, were fintechs, adding: "I think excitement is back."
"That's certainly evident not only in the public markets performance of companies like Chime, but in the private markets, where a number of fintech unicorns like Mercury are once again attracting capital. (In March, Mercury raised its Sequoia-led $300 million Series C at a $3.5 billion valuation.) The company now tells Fortune it's reached a key financial milestone: At the end of Q3, Mercury hit $650 million in annualized revenue, a nice jump from $500 million by the end of 2024."
"In a world where startups sometimes hide behind squishy financial metrics, Akhund is refreshingly clear about its numbers. This annualized revenue calculation isn't a software-as-a-service-era ARR calculation (as Akhund notes, historically ARR refers to predictable long-term contracts, but that doesn't align with fintech's model). Mercury's annualized revenue figure takes monthly revenue, multiplies it by 12, Akhund said. The company added that it has now been GAAP profitable on both net-income and EBITDA for three consecutive years."
Fintech has rebounded in 2025 as many 2020-era startups reach maturity and public-market performance improves. Several fintech IPOs in 2025, including Circle and Chime, signal renewed investor enthusiasm. Mercury raised a Sequoia-led $300 million Series C at a $3.5 billion valuation and reached $650 million in annualized revenue at the end of Q3, up from $500 million at the end of 2024. Mercury calculates annualized revenue by multiplying monthly revenue by 12 and reports GAAP profitability on both net income and EBITDA for three consecutive years. Profitability and high margins are emphasized as critical in banking.
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