Grasshopper, a New York-based client-first, full-service digital bank, has closed a US$46.6 million funding round.
The round was led by Patriot Financial Partners LP, with additional participation from Glendon Capital Management.
The investment supported Grasshopper Bank’s merger with Auto Club Trust, FSB in April 2025 and will contribute to the continued development of its digital banking platform.
The bank plans to enhance its range of solutions for businesses while expanding into consumer banking.
Its current offerings include depository accounts, lending products, and financial tools designed to support business growth.
Following strong performance in 2024, Grasshopper sustained its momentum in the first half of 2025.
As of 30 June 2025, the bank reported a 53% year-on-year increase in total assets to US$1.33 billion, an 81% rise in total deposits to US$2.37 billion, and a 49% increase in total loans to US$961.8 million compared to 31 December 2024.
The new capital will support the bank’s plans to scale its technology infrastructure, expand its product offering, and grow its reach in both business and consumer markets.
“From the beginning, our vision has been to redefine what digital banking can do for entrepreneurs, modern businesses, and the ecosystem that supports them. With our recent acquisition, we are excited to expand that vision to serve consumers through our affinity banking partnership with The Auto Club Group,”
said Mike Butler, CEO of Grasshopper.
“The backing from this seasoned group of investors is a powerful vote of confidence in our mission, our strategy and our team. We’re incredibly proud of the momentum we’ve built, and we’re just getting started. This capital gives us the opportunity to continue pushing boundaries, broaden our reach, and unlock new possibilities in how we deliver meaningful, future-ready digital banking experiences that meet people where they are and anticipate where they’re headed next.”
Featured image credit: Edited by Fintech News America, based on image by jcomp via Freepik
