Greenwood, a challenger bank aimed at serving Black and Latinx communities, raised $40 million in Series A funding from some of nation’s largest banks, the Atlanta-based fintech announced Thursday.
Led by Truist Ventures, the digital bank’s funding round includes investments from JPMorgan Chase, Bank of America, Wells Fargo and PNC, in addition to payments giants Mastercard and Visa. A sixth major bank has chosen to remain unnamed, a Greenwood spokesperson said.
Other investors include technology provider FIS, Hispanic-owned Banco Popular and venture capital firms SoftBank, TTV Capital, Lightspeed Venture Partners and Quality Ventures. Alvin Kamara, a running back for the NFL's New Orleans Saints, also joined the startup as an investor.
"It's almost heartstopping," Greenwood co-founder Ryan Glover said of the lineup of investors. "It's great to have those banks and financial institutions and entertainment companies, because I believe it takes collaboration and community to solve this multi-generational problem."
Greenwood, which raised $3 million in seed funding from private investors in October, says its mission is to create nonpredatory lending products for recirculation of capital in Black and Latinx communities.
The startup, which Glover said was valued at $180 million ahead of the Series A, plans to launch this summer with spending and savings accounts. Other features will include virtual debit cards, peer-to-peer transfers, mobile check deposits and free ATM usage in more than 30,000 locations.