Cross River announces $620 million capital raise
CRB Group, the parent company of Cross River Bank, a technology infrastructure provider that offers embedded financial solutions, announced a $620 million financing. The round was led by Eldridge and Andreessen Horowitz, with participation from funds and accounts advised by T. Rowe Price Investment Management, Inc., Whale Rock and Hanaco Ventures. Several of Cross River’s existing investors and significant partners also participated in the round.
Cross River currently powers lending and payments for over 80 technology partners including Affirm, Best Egg, Checkout.com, Coinbase, Divvy, Freedom Financial, Pay.com, Rocket Loans, Stripe, Trustly, Upgrade and Upstart. The new capital will accelerate Cross River’s ongoing technology-focused growth strategy, which includes four core initiatives: building out the company’s embedded payments, cards, lending and crypto solutions; further investing in its people and communities; continuing to execute against plans for international expansion; and bolstering strategic partnerships that underscore Cross River’s commitment to reshaping global finance and promoting financial inclusion.
Founded in 2008, Cross River is based in Fort Lee, NJ with just two branches – in Teaneck, NJ and Brooklyn, NY. It operates a model known as “rent-a-charter,” giving fintechs access to banking solutions while handling regulatory demands.
“Cross River is powering the future digital economy and changing lives by reinventing the way financial services are accessed. The quality of the investor group and size of our latest funding make this a landmark transaction in the financial technology arena, and will enable us to accelerate the growth of Cross River as the foundation of modern finance.” – Gilles Gade, founder, president and CEO of Cross River.
“As a technology company with the established expertise of a bank, Cross River is providing essential infrastructure for the future of finance and enabling companies to empower customers with a full suite of fintech solutions. We are excited to support Gilles and his team with their continued global expansion.” – Todd Boehly, co-founder and CEO of Eldridge.
“Cross River enables every company to become a fintech company, a vision we are bullish about at a16z and another reason why we’ve been committed to Cross River since the early days of the business. Their technology has unlocked opportunities across the entire fintech ecosystem providing trusted and efficient integrations to their partners. We’re proud to continue to support this team on their mission to reinvent the way financial services are delivered in the U.S. and around the world.” – David George, general partner of the Growth Fund at Andreessen Horowitz.
“As Web3 continues to gain mindshare of consumers and businesses alike, we believe Cross River sits in a unique position to serve as the infrastructure and interconnective tissue between the traditional and regulated centralized financial system, as it transitions slowly to a decentralized one. Whether it’s lending, transfers, payments and more, Cross River will offer its partners a regulatory compliant and approved framework to increase their crypto offerings and expand their reach — the same way Cross River was able to support the growth of now category leaders within personal lending and BNPL, among others.” – Lior Prosor, General Partner and Co-founder of Hanaco Ventures.