Digital-only challenger bank Varo Money announced on Wednesday it secured $241 million through its Series D funding round, which was led by Gallatin Point Capital and The Rise Fund, co-founded by TPG, U2 lead singer Bono, and Jeff Skoll, a global entrepreneur, impact investor and movie producer. Other participants of the round include HarbourVest Partners and Progressive Insurance.
Founded in 2015, Varo Money states it is on a mission to redefine banking so it’s easy for everyone to make smart choices with their money. Colin Walsh, CEO and Co-Founder of Varo Money, further explained:
“We’re building a bank from the ground up to improve the financial health of our customers through better technology and total transparency. From the start, our team has paired banking veterans with tech experts to build a mobile-only bank account that makes smart financial choices easy.”
Walsh noted that Varo will bring its mission of financial inclusion to life and create more financially resilient communities and the new investment will enable he and his team to complete the chartering process. Varo is also planning to use the funding to fuel its growth and “innovate” across a range of financial products to build the financial resilience of everyday Americans
Varo added it is in the final stages of its national bank charter application, and pending completion of the conditions of the OCC, the FDIC, and the Federal Reserve. The bank will receive approval to be a national bank, which is expected in summer 2020. Upon charter approval, it will expand its services to offer credit cards, loans, and additional savings products
Varo filed a Form D indicating its intent to raise $150 million in January. At that time, approximately $38 million had been raised.
