Varo Money, a federally chartered digital bank, is raising growth capital.
According to a Form D filed with the Securities and Exchange Commission, Varo is seeking $55 million. As of the date of the filing, Varo has raised almost $29 million with around $26 million remaining.
The funding round is part of a Series G offering of preferred shares, not voting common stock and warrants to acquire more common shares. FTP Securities LLC is aiding in the sales of the securities.
Varo reports on its website over $150 million in deposits and $550 million in loans originated on its platform.
Varo offers standard bank services, including savings and credit. The platform includes cards, ATM access, early pay and other features while touting its “no hidden fees” promise.
In 2023, Varo downsized operations by eliminating certain operations like outsourcing its contact center while promising employees revenue would increase. In recent days, Varo founder and CEO Colin Walsh announced he would be stepping down and relinquishing leadership to Gavin Michael, formerly CEO of Bakkt. It was reported that Varo lost $65 million in 2024.
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!