rewrite this title Digital Bank Grasshopper Bank Raises $46.6 Million – Finovate

Grasshopper Bank raised $46.6 million in a funding round led by Patriot Financial Partners to support its April merger with Auto Club Trust SDB and expand its digital banking platform.

The investment was led by Patriot Financial Partners LP with additional participation from Glendon Capital Management.

The bank plans to scale its tech and broaden offerings, adding four new board members to help guide its next phase.

Digital small business bank Grasshopper Bank announced it landed a $46.6 million round of funding. The investment was led by Patriot Financial Partners LP with additional participation from Glendon Capital Management.

The digital bank will use the funds to support its merger with Auto Club Trust SDB, completed in April of this year. Following the deal, Grasshopper’s total assets grew 53% to $1.33 billion, its total deposits increased 81% to $2.37 billion, and its $961.8 million in loans were up 49% from December 31, 2024 to June 30, 2025.

The New York-based company also plans to use the investment to scale its technology and expand its product offerings to create digital banking solutions that meet its clients’ evolving needs.

“The backing from this seasoned group of investors is a powerful vote of confidence in our mission, our strategy, and our team,” said Grasshopper CEO Mike Butler. “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.”

Grasshopper Bank was founded in 2016 as a full-service digital bank that tailors its products and services to specific industries, including small businesses, startups, venture capital, private equity firms, BaaS and commercial API platforms, lending, and white-labeled consumer banking.

“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,” added Butler.

In addition to the funding announcement, Grasshopper also revealed that it has added four new members to its board, including James Fitzgerald, retired former Chief Administrative and Chief Financial Officer of Eastern Bankshares Inc. and Eastern Bank; Brian Graham, co-founder and partner in the Klaros Group; Karen Solomon, a bank regulatory lawyer with more than three decades of experience spanning the public and private sectors; and John M. Surgent, Founder of GMS Surgent CPAs, Surgent Professional Education, and JM Surgent Capital.

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