Cross River Bank to raise USD 200 mln

The company, advised by FT Partners, is in early discussions with prospective suitors about raising roughly USD 200 million. Terms of the funding round aren’t finalised and could change. Representatives for Cross River and FT Partners didn’t immediately respond to requests for comment, says Bloomberg.

Earlier in 2021, Cross River agreed to acquire data and risk analytics firm Synthetic P2P Holdings, better known as PeerIQ. It has originated more than USD 46 billion in loans since its 2008 inception, and worked with over 375,000 businesses to secure Paycheck Protection Programme loans, its website shows.

Cross River is a FDIC-insured bank. In 2018, it raised about USD 100 million in a funding round led by KKR & Co. that included participation from investors including CreditEase, Lion Tree Partners, Ribbit Capital, Battery Ventures and Andreessen Horowitz. In 2020, the company said its parent had issued USD 106 million of subordinated notes that it earmarked as ‘opportunistic capital’ to fuel strategic growth plans.

Its clients have included Affirm, Best Egg, Upstart, RocketLoans, Coinbase, and Wise, formerly known as TransferWise, Cross River has said. In June 2021, the company said it had formed Cross River Digital Ventures, a venture capital arm, which intends to back companies in lending, payments, investing, and fintech.