Grasshopper, a digital bank headquartered in New York, has announced the completion of a $46.6m funding round led by Patriot Financial Partners.
Glendon Capital Management also participated in the funding round.
The investment facilitated the merger of Grasshopper Bank with Auto Club Trust, FSB in April 2025 and is set to support the bank’s expansion plans.
The funds will be directed towards enhancing Grasshopper’s digital platform, which aims to broaden its range of banking solutions for businesses and consumers. This includes secure depository accounts, flexible lending options, and financial tools designed to support growth at various stages.
Grasshopper CEO Mike Butler said: “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.
“The backing from this seasoned group of investors is a powerful vote of confidence in our mission, our strategy and our team.”
As of 30 June 2025, Grasshopper’s total assets had increased by 53% to $1.33bn compared to the end of 2024. Deposits rose by 81% to $2.37bn, while loans reached $961.8m, marking a 49% increase over the same period.
The new capital is expected to further propel Grasshopper’s development by scaling technology, expanding product offerings, and solidifying its position in the digital banking market for businesses and consumers.
Grasshopper Bank offers customised banking solutions tailored to specific sectors, including small businesses, startups, venture capital firms, and more. It provides services like fintech-focused banking-as-a-service (BaaS), commercial API banking platforms, SBA lending, commercial real estate lending, yacht lending, and white-labelled consumer banking products.
The institution is a member of the Federal Deposit Insurance Corporation and operates as an Equal Housing/Equal Opportunity Lender.
