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With the raised funds, the company hopes to expand its employee base from 800 to at least 1000 by the end of 2022.
New Jersey-based bank Cross River has reportedly raised $620 million in funding according to TechCrunch. Before now, the bank had only raised $80 million across three funding rounds. The last of these was in October 2016 when it raised $30 million. Now, it has raised $620 million to achieve a valuation of $3 billion.
The funding round was led by Andreessen Horowitz along with the private equity firm Eldridge. There was also participation from accounts and funds advised by Hanaco Ventures, T. Rowe Price Investment Management, and Whale Rock.
Describing Cross River, co-founder and CEO of Eldridge, Todd Boehly noted it was a tech company possessing the same experience as a bank. Speaking along the same line, the co-founder of Hanaco Ventures, Lior Prosor, had this to say:
“Cross River sits in a unique position to serve as the infrastructure and interconnective tissue between the traditional and regulated centralized financial system.”
How Cross River Will Deploy the Money Raised in the Funding Round
According to Gilles Gale, founder and CEO of Cross River, the bank is pushing for global expansion. Using the funds, the company hopes to expand its employee base from 800 to at least 1000 by the end of 2022. It also hopes to build more strategic partnerships with tech firms and businesses.
Since its establishment in 2008, Cross River has provided its services to many companies effectively positioning itself at the centre of the fintech revolution. Now, it boasts over 80 customers including, Affirm, Coinbase, and Stripe. Gade noted that the agility and stability of their core infrastructure and embedded tech are what have made them relevant.
At the time, the company’s offerings include embedded payment solutions, cards, lending, and crypto offering. Beyond this, the company is looking to take on a crypto-first outlook even as it positions itself to take advantage of market trends.
Speaking on this, Gade noted that the company has been crypto-focused for a long time. Now, it is expanding its outlook to include a focus on web3. “We’ve been at this for a long time and understand the requirements of the market, its dynamics and where the market is going,” he said.
Cross River also announced a partnership with Chainalysis to attract more crypto clients.