Today, we’re excited to announce that Mercury secured a $100 million credit warehouse with multinational bank Natixis Corporate & Investment Banking. This will help us to fuel the growth of our corporate credit card
For Mercury, this marks an important milestone in the growth and trajectory of our IO card business. When we launched it in September 2022, a company credit card was the single most requested feature from our customers. Now, two years later, the IO World Elite Mastercard has grown significantly. Total monthly spend has increased by more than 3X in the last year alone. It is also now the most used corporate card among our customers, according to our internal data.
A warehouse line of credit is a financial vehicle commonly used by fintechs to scale their credit programs. When we first introduced the IO World Elite Mastercard, we floated the card program off our balance sheet as we proved product-market fit and began scaling it out. Given its growth, funding our credit card program through this warehouse facility is a natural evolution for us. It is backed by our receivables and allows us to extend credit to more customers.
We've continued to add new features and capabilities to our cards, expanding the flexibility and control customers can unlock with the card. These include merchant-locked cards; daily, weekly, monthly, or temporary spend limits; custom card expiration dates; a subscription dashboard to view your whole company’s card subscriptions and easily spot duplicates; and custom mapping rules to automatically categorize card transactions for syncing to QuickBooks, Xero, and NetSuite. Additionally, we’ve launched new benefits with Mastercard including offering US-issued small business cardholders a complimentary year of Soho Friends, a travel and lifestyle program by Soho House.
We are committed to serving the entrepreneurial journey, and we understand that customers may be newly incorporated, in the process of receiving funding, and have limited credit or banking history. We also know how important it is for startups to have early access to credit in order to accelerate their growth. Through underwriting updates made possible by our customers’ cash balances held within Mercury, we’ve doubled the percentage of customers eligible for the IO World Elite Mastercard since the start of 2023.
Mercury’s financial health is the strongest it’s ever been as we recently achieved our ninth consecutive quarter of cash flow and EBITDA profitability, with more money on our balance sheet than we’ve ever raised. We will continue to invest in our IO card program, including product development, hiring, and building new features, off our balance sheet while this new credit warehouse will allow us to scale the business sustainably in our next phase of growth.
What’s next? We’re continuing to invest in corporate cards, and in our employee expense management platform more broadly. Today, we’re also launching expense reimbursements, giving founders and finance teams another tool to complement corporate cards, with expanded spend policies that can be used to control spend across both cards and reimbursements. We have more exciting updates on the future roadmap, including integrations with HR and payroll systems and automatic receipt matching for card transactions.
Dan Kang, VP of Finance