US-based digital commercial bank Grasshopper has announced a $30.4m investment, taking its total funding since inception to $160m.
The round was joined by new investor GCP Capital Partners along with existing backers including Patriot Financial Partners, Endeavour Capital Advisors, FJ Capital Management, and Carpenter & Company.
Grasshopper CEO Mike Butler said: “We are very pleased with the support of this experienced group of investors. Our strategic direction is set. Therefore, the new capital will further support our growth and solidify our ability to provide clients with leading-edge technology and personalised digital banking solutions across the business and innovation economies.”
Along with the fundraise, the digital bank is bolstering its board of directors by onboarding Boris Gutin from GCP Capital Partners and Bradford Kopp.
Grasshopper caters to small and medium-sized businesses and entrepreneurs with its suite of digital tools, fintech partnerships, and bespoke services and solutions.
Its solutions cover small businesses, venture-backed companies, banking-as-a-service (BaaS), commercial API banking platforms, and commercial real estate lending among others.
Butler took charge as the bank’s CEO in May 2021 and the firm has since then expanded its management team, added new lines of business catering to the lending needs of the SMB market and launched deposit gathering businesses that include a BaaS platform and SMB banking services.
Grasshopper has formed alliances with fintech firms to rebuild the technology platform and increased its headcount by 82%.
Grasshopper claimed that these changes have resulted in an 84% growth in total assets, 358% growth in loans, and 192% growth in core deposits between 30 June 2021 and 30 June 2022.