FinTech News
Varo Bank Reveals $123.9 Million Series G Funding Round
The first FinTech to gain a national bank charter continues to raise funds.
About Varo’s Latest Funding Round:
This week, Varo Bank announced that it raised $123.9 million in growth investment. The Series G was led by returning investor Warburg Pincus, along with newcomer Coliseum Capital Management. Other existing investors including Northview also participated, increasing their investments in the bank.
Along with this update, Varo is adding two new members to its Board of Directors. Alice Milligan (former chief marketing officer at Morgan Stanley) and Kevin Watters (former division chief executive officer at JP Morgan) have been named to the bank’s board.
Today’s news comes nearly one year after a $29 million round, which was also described as a Series G. Moreover, its now been a year since Varo founder Colin Walsh stepped down as CEO.
More On Varo:
Launched in 2017, Varo officially became a bank in 2020. Since then, the company has introduced new features and offerings, including cash advances, a credit-builder credit card, and more. Elsewhere, its deposit accounts carry no monthly fees, have no minimum balance requirements, and even allow for free cash deposits at CVS locations.
What They’re Saying:
Commenting on the funding, Varo Bank’s current CEO Gavin Michael stated, “This combination of new capital, Coliseum’s partnership, and experienced banking leaders joining our board, is propelling Varo into its next phase of growth. We remain focused on operating with discipline and delivering meaningful impact for our customers.”
Meanwhile, Coliseum Capital Management co-founder and managing partner Chris Shackelton said of the firm’s investment, “This investment reflects our confidence in Varo’s leadership team and uniquely compelling growth potential. We are thrilled to join Warburg Pincus as long-term, collaborative partners, and support Varo’s work to expand its customer value proposition and to further differentiate from traditional banks.”
Shackelron added, “We believe Varo is building a resilient and scalable platform from which to capitalize on a significant market share opportunity.”
My Thoughts:
There’s no question that Varo broke new ground and set an important precedent when it became the first all-digital platform to earn a national bank charter. Unfortunately, it doesn’t seem as though things have gone well from there, as the company continues to post losses. I’m hoping that they can turn things around, but it does start to feel as though these funding raises are only biding time.
All this makes Varo Bank one to watch in 2026… even if it’s not for the right reasons.
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