Customer moment: How Hathora uses Treasury for growth-focused cash management

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Siddharth Dhulipalla, co-founder and CEO of Hathora
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Graph demonstrating yield and balance with Mercury Treasury
Put your idle cash to workExplore TreasuryMercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.
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We spoke with Siddharth Dhulipalla, co-founder and CEO of Hathora, which uses Mercury Treasury

Mercury Treasury is offered by Mercury Advisory, LLC, an SEC-registered investment adviser. Registration with the SEC does not imply a certain level of skill or training. SEC registration does not mean the SEC has approved of the services of the investment adviser. This communication does not constitute an offer to sell or the solicitation of any offer to purchase an interest in any of the Mercury Advisory, LLC investments or accounts described herein. Past performance is not indicative, and is no guarantee, of future results. Mercury Treasury is not insured by the FDIC. Mercury Treasury are not deposits or other obligations of Choice Financial Group or Evolve Bank & Trust, and are not guaranteed by Choice Financial Group or Evolve Bank & Trust. Mercury Treasury products are subject to investment risks, including possible loss of the principal invested. Please see full disclosures at mercury.com/treasury.
1 to support the company’s growth-focused cash management strategy and extend its runway.

Feature: Mercury Treasury

Company: Hathora

Founder: Siddharth Dhulipalla

What they’re building: A developer-focused platform that accelerates multiplayer game development by using serverless computing to reduce operational complexity at scale.

This interview has been lightly edited for clarity.


Tell us a bit more about Hathora.

Hathora offers game studios a cutting-edge server-hosting platform specifically designed for multiplayer games, providing low latency, high availability, and scalability. With a team of top-tier professionals and seamless infrastructure solutions, Hathora simplifies the development, deployment, and management of multiplayer experiences, empowering game studios to deliver optimized gameplay and an exceptional player experience.

How do you approach cash management at Hathora?

Our cash management strategy is designed for maximum efficiency and security. It’s a mix of readiness, risk mitigation, and growth-focused investment. We have our main operating account that holds two months of expenses. Then we have a backup account that holds one month of expenses and is a strategic safeguard against external financial disruptions. 

Finally, the bulk of our funds — over 90% — are in Mercury Treasury,

The provider of this testimonial was not compensated and is a client of Mercury Advisory LLC.
2 balancing security with growth. This aligns with our long-term financial stability and growth objectives.

Have your priorities around cash management remained largely the same over time or have you re-evaluated your strategy at any point?

It’s been steady over the last 18 months. The key change was shifting from a high-yield savings account to Treasury for better yields, adapting to market opportunities while maintaining our core financial stability.

How did you determine that Mercury Treasury was the right fit for your company?

Going with Mercury Treasury came down to three main factors for us:

  1. Ease of use: The setup process was straightforward, integrating seamlessly as another account within Mercury. Its day-to-day operations are largely automated, minimizing manual intervention and streamlining our financial management.
  2. Stability: The investment in lower-risk money market funds composed primarily of government-backed t-bills provides a stable foundation for our funds, which aligns well with our risk management principles.
  3. High yields: The yield is competitive, closely tracking the federal interest rate. This ensures our idle cash is not only safe but also growing effectively.

It was really about this mix of simplicity, stability, and profitability that made it the clear choice for our company's needs. We did feel like the 0.35% management fee was a bit hefty when we were getting started, but it's balanced against the complexity of managing a corporate brokerage account independently — so really not too bad when you think about it from a cost-benefit perspective.

What is your favorite aspect/feature of Mercury Treasury?

My favorite feature of Mercury Treasury is its automatic transfer rules, which are essential for two reasons:

  1. Assured operational liquidity: These rules ensure our primary operating account always maintains minimum balance levels. This guarantees that we have sufficient capital for day-to-day operations which is crucial for running our business smoothly.
  2. Optimized capital utilization: While our operational needs are securely met, the majority of our capital is actively engaged in high-yield investments. This not only extends our financial runway but also maximizes returns, striking a perfect balance between liquidity and growth.

This feature allows me to rest easy, knowing that Hathora's financial operations are efficient, secure, and strategically aligned with our long-term objectives.

And like I mentioned earlier, the ease of getting it going was also a big benefit for us. Mercury Treasury has a really user-friendly setup and operation, which frees me up to concentrate on business growth rather than micromanaging finances.

How has having Mercury Treasury as a part of Hathora’s cash management strategy supported the company’s growth?

Mercury Treasury has been a game-changer for Hathora, notably extending our financial runway by three months with minimal effort. This extra time is invaluable, giving us more room to grow and strategize without immediate financial constraints.

The statements in this article are the opinions of those featured and are not intended to be viewed as investment advice. Seek a duly licensed professional for investment advice.
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