Digital Bank Varo Secures $510m in Series E Funding Round

Fazzaco learned that Varo, a San Franciso-based digital bank, has secured $510 million in a Series E funding round, which was led by Lone Pine Capital with participation from existing backers including Warburg Pincus, The Rise Fund, and Gallatin Point Capital as well as new investors such as Declaration Partners and Eldridge.

With the new funds, Varo intends to invest in further product and technology development and fuel customer growth. It has doubled its opened accounts to four million and tripled its revenue.

Launched in 2017, Varo's digital banking platform offers current accounts with no monthly fees, savings accounts, and wealth management features aimed at advancing financial inclusion.

The firm became the first consumer fintech to be granted a national bank charter by the Office of the Comptroller of the Currency (OCC) in summer 2020, allowing the company to offer a full range of services backed by the Federal Deposit Insurance Corporation (FDIC).