Total amount raised
$1.1B
Latest funding date
2026-02-02
Location
Varo Bank has raised over $1.1 billion across multiple funding rounds, backed by investors including Warburg Pincus, Lone Pine Capital, Gallatin Point Capital, Coliseum Capital Management, and The Rise Fund.
Keep reading to explore Varo Bank's fundraising journey.
What Is Varo Bank?
Varo Bank is a San Francisco-based all-digital, nationally chartered bank — the first of its kind in the United States. Founded in 2015, Varo offers mobile-first banking services including high-yield savings, fee-free checking, and consumer lending products, serving customers who are underserved by traditional banks.
How Much Funding Has Varo Bank Raised?
- Series A
- Amount Raised: USD 27,000,000
- Date: May 2016
- Lead Investors: Warburg Pincus
- Series B
- Amount Raised: USD 45,000,000
- Date: January 2018
- Lead Investors: Warburg Pincus, The Rise Fund
- Series C
- Amount Raised: USD 100,000,000
- Date: July 2019
- Lead Investors: Warburg Pincus
- Other Investors: The Rise Fund, Gopher Asset Management
- Series D
- Amount Raised: USD 241,000,000
- Date: June 2020
- Lead Investors: Gallatin Point Capital, The Rise Fund
- Other Investors: HarbourVest Partners, Progressive Insurance, Jeff Skoll, Bono (Paul Hewson)
- Corporate Round
- Amount Raised: USD 63,000,000
- Date: February 2021
- Lead Investors: Russell Westbrook Enterprises
- Series E
- Amount Raised: USD 510,000,000
- Date: September 2021
- Lead Investors: Lone Pine Capital
- Other Investors: Warburg Pincus, Declaration Partners, Eldridge Industries, Marshall Wace, Berkshire Partners, BlackRock, Stack Capital Group, CE Innovation Capital
- Equity Round (Down Round)
- Amount Raised: USD 50,000,000
- Date: 2023
- Lead Investors: Warburg Pincus
- Note: Raised at a valuation of approximately $1.85 billion, representing a ~28% discount from the Series E valuation.
- Series G
- Amount Raised: USD 123,900,000
- Date: February 2, 2026
- Lead Investors: Warburg Pincus, Coliseum Capital Management
- Other Investors: Northview (existing investor)
Total Amount Raised: at least $1.1 billion based on disclosed funding.
Key Investors
- Warburg Pincus
- Details: A global private equity firm and long-term Varo backer, Warburg Pincus has led or co-led multiple rounds including Series A, Series B, Series C, the 2023 equity round, and the 2026 Series G. The firm has been Varo's most consistent institutional supporter throughout its growth.
- Lone Pine Capital
- Details: Greenwich-based hedge fund that led Varo's landmark $510 million Series E in September 2021, which valued the company at $2.5 billion post-money.
- Gallatin Point Capital
- Details: Co-led the $241 million Series D in June 2020 alongside The Rise Fund, helping Varo secure capital to complete its national bank charter application.
- Coliseum Capital Management
- Details: A private investment firm focused on undervalued companies with a long-term orientation, Coliseum Capital co-led Varo's February 2026 Series G round as a new investor.
- The Rise Fund
- Details: TPG's global impact investing fund, The Rise Fund participated across multiple rounds including Series B, Series C, and Series D, reflecting Varo's mission-driven approach to financial inclusion.
- Russell Westbrook Enterprises
- Details: NBA star Russell Westbrook led the $63 million corporate round in February 2021, also joining Varo as an advisor to co-create community impact programs.
What's Next for Varo Bank?
Varo Bank is focused on scaling its lending and banking platform following its $123.9 million Series G raise in early 2026. With new board members and backing from both long-term investor Warburg Pincus and new partner Coliseum Capital Management, Varo is positioning itself for its \"next phase of growth,\"according to CEO Gavin Michael. The bank will deploy capital to expand consumer lending products, improve customer experience, and further its mission of delivering inclusive banking to underserved Americans.
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