Grasshopper has completed a $46.6 million funding round led by Patriot Financial Partners LP, marking a significant milestone for the digital banking platform as it expands beyond its traditional business-focused services. The investment round, which included participation from Glendon Capital Management, comes as the company demonstrates substantial growth across key financial metrics.
Merger and Growth Strategy
The funding facilitated Grasshopper’s merger with Auto Club Trust, FSB, completed in April 2025. This strategic combination enables the digital bank to broaden its service offerings to include consumer banking through an affinity partnership with The Auto Club Group, expanding beyond its established business banking foundation.
Financial performance data reveals the company’s rapid expansion trajectory. Between December 2024 and June 2025, total assets climbed 53% to reach $1.33 billion, while deposits surged 81% to $2.37 billion. The loan portfolio grew by 49% to $961.8 million during the same period, reflecting both organic growth and the benefits of the Auto Club Trust acquisition.
Technology and Product Development Focus
The capital injection will support technology infrastructure scaling and product portfolio expansion. Grasshopper plans to enhance its digital platform capabilities while developing new financial tools designed to serve both business clients and individual consumers.
“From the beginning, our vision has been to redefine what digital banking can do for entrepreneurs, modern businesses, and the ecosystem that supports them” ~ Mike Butler, CEO of Grasshopper.
Butler emphasized the company’s commitment to delivering comprehensive digital banking experiences that anticipate customer needs across different market segments.
Board Expansion and Leadership
Four seasoned financial services executives have joined Grasshopper’s Board of Directors, bringing decades of combined experience in banking, regulation, and entrepreneurship. The appointments signal the company’s preparation for its next growth phase.
Jim Fitzgerald, formerly Chief Administrative and Chief Financial Officer of Eastern Bankshares Inc., brings experience from growing a bank from $8 billion to over $25 billion in assets. His background includes overseeing public offerings and major acquisitions during his tenure at Eastern Bank and previous roles at Citizens Financial Group.
Brian Graham, co-founder and partner at Klaros Group, contributes expertise in banking and fintech advisory services. His career spans leadership roles at BancAlliance, CapitalSource, and Blue Ridge Capital Management, along with public policy experience at Fannie Mae and the US Department of Treasury.
Karen Solomon adds regulatory expertise through her three-decade career in bank regulation, including senior positions at the Office of the Comptroller of the Currency where she served as acting chief counsel. She currently works with fintech companies and banks at Covington & Burling, LLP.
John M. Surgent brings entrepreneurial experience from founding GMS Surgent CPA’s and Surgent Professional Education, which became the largest provider of Continuing Professional Education to CPAs in the United States before its sale to private equity. He also operates JM Surgent Capital, focusing on private equity and alternative asset investments.
Market Positioning and Future Outlook
The funding round and board expansion position Grasshopper to compete more effectively in the digital banking sector while maintaining its client-focused approach. The company’s strategy centers on delivering banking solutions that adapt to evolving business and consumer needs.
“This capital gives us the opportunity to continue pushing boundaries, broaden our reach, and unlock new possibilities” ~ Mike Butler, CEO of Grasshopper.
The investment represents confidence from experienced financial services investors in Grasshopper’s business model and growth trajectory. With the expanded leadership team and additional resources, the company aims to strengthen its market presence while developing innovative banking products for diverse customer segments.