Mercantile launches with $15m Series A to support small businesses


Mercantile, an industry-specific credit card platform designed to meet the unique needs of small businesses, has launched with $15m in Series A funding.

The Series A round was led by Index Ventures, with participation from seed investors First Round Capital, General Catalyst, SV Angel, Operator Partners, Box Group, and others.

The round sees the company’s total funding amount to $22m.

By creating customised credit card programmes based on industry-specific needs and partnering with leading industry organisations, Mercantile said it returns more relevant benefits and rewards to cardholders than any other card out there.

Mercantile is starting in the healthcare sector and will soon expand to other markets. Initial partners include the American Optometric Association, the Opticians Association of America, the Academy of Doctors of Audiology, and the Medical Group Management Association.

With this capital, Mercantile said it plans to further invest in product development, as well as build out its partnership and go-to-market teams.

Mark Fiorentino, partner at Index Ventures and new Mercantile board member, said, “Mercantile is applying the latest in fintech to small business markets that have been grossly underserved. Hundreds of billions of dollars in total payments flow through small businesses each year, but it can be very difficult to tap in if not approached correctly.

“Creating co-branded card programs with industry-specific players allows for scalable distribution while the SMBs benefit from amassing the purchasing power of an enterprise sized customer.”

Bob Kehm, managing director of the American Optometric Association, added, “We worked closely with the Mercantile team and were delighted by the card program they designed for our members. This is the first time anything of this nature has been created that truly maps to our members’ needs. The response from our members so far has been incredible, as Mercantile has delivered exactly what was promised.”

Power, a FinTech that has launched a full-stack credit card issuance platform, has recently bagged $316.1mafter a $300m credit facility and $16.1m in seed funding.

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