Total amount raised
$1.1 Billions
Latest funding date
2/1/2025
Location
Varo Bank has successfully raised significant capital through multiple funding rounds, with its latest being a Series G. The digital bank is backed by a diverse group of 28 investors, including prominent names like Warburg Pincus and Uni-Ventures.
Keep reading to explore the intricacies of Varo Bank's fundraising journey and the investors supporting this innovative financial platform.
What Is Varo Bank?
Varo Bank, founded in 2015, is a digital bank headquartered in San Francisco, California. The bank was established by Assaf Guery, Colin Walsh, Mykola Klymenko, and Roger Van Duinen.
Varo Bank offers a range of innovative banking services, including no-cost premium bank accounts and high-interest savings accounts. The bank is designed with inclusivity in mind, providing tech-first features to help users manage their finances more efficiently.
With a workforce of 501-1000 employees, Varo Bank continues to grow and innovate in the financial services sector.
How Much Funding Has Varo Bank Raised?
- Seed Round
- Amount Raised: Not publicly disclosed
- Date: April 2015
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Initial capital to develop the digital banking platform.
- Series A
- Amount Raised: $28.4M
- Date: May 2016
- Lead Investors: Warburg Pincus
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and accelerate product development.
- Debt Financing
- Amount Raised: $5M
- Date: January 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support operational costs and initial market entry.
- Series B
- Amount Raised: $45M
- Date: January 2018
- Lead Investors: The Rise Fund, Warburg Pincus
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance product offerings.
- Series C
- Amount Raised: $100M
- Date: July 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand market reach and improve technology infrastructure.
- Series D
- Amount Raised: $241M
- Date: June 2020
- Lead Investors: Gallatin Point Capital, Jeffrey S. Skoll, Paul Hewson (Bono), The Rise Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support rapid growth and new product launches.
- Corporate Round
- Amount Raised: $63M
- Date: February 2021
- Lead Investors: Russell Westbrook Enterprises
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance brand presence and strategic partnerships.
- Series E
- Amount Raised: $510M
- Date: September 2021
- Lead Investors: Lone Pine Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fuel international expansion and technological advancements.
- Venture Round
- Amount Raised: $50M
- Date: February 2023
- Lead Investors: Warburg Pincus
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing innovation and market penetration.
- Series G
- Amount Raised: $29M
- Date: February 2025
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To sustain growth and enhance customer experience.
Total Amount Raised: $1.071B. Current Valuation: Not publicly disclosed.
Key Investors
- Warburg Pincus
- Details: Warburg Pincus is a global private equity firm with a focus on growth investing. The firm has a long history of partnering with management teams to build durable companies.
- Investment Focus Areas: Technology, Healthcare, Financial services
- Notable Investments: Airbnb, Ant Financial, CrowdStrike
- Lone Pine Capital
- Details: Lone Pine Capital is a hedge fund founded by Stephen Mandel. The firm is known for its concentrated portfolio and long-term investment approach.
- Investment Focus Areas: Technology, Consumer, Healthcare
- Notable Investments: Amazon, Alphabet, Microsoft
- Russell Westbrook Enterprises
- Details: Russell Westbrook Enterprises is an investment firm founded by NBA player Russell Westbrook. The firm focuses on leveraging Westbrook's brand and influence to drive business success.
- Investment Focus Areas: Technology, Media, Consumer products
- Notable Investments: Not publicly disclosed
- Gallatin Point Capital
- Details: Gallatin Point Capital is a private investment firm focused on financial services. The firm aims to create value through strategic investments and partnerships.
- Investment Focus Areas: Financial services, Technology, Real estate
- Notable Investments: Not publicly disclosed
- The Rise Fund
- Details: The Rise Fund is a global impact investing fund managed by TPG. The fund focuses on achieving social and environmental impact alongside competitive financial returns.
- Investment Focus Areas: Education, Healthcare, Technology
- Notable Investments: EverFi, DreamBox Learning, Brava Home
What's Next for Varo Bank?
Varo Bank stands at the cusp of significant growth opportunities, driven by the increasing demand for digital banking solutions. As the financial industry continues to evolve, Varo Bank is well-positioned to capitalize on the shift towards online and mobile banking, offering a seamless and inclusive banking experience.
Future fundraising efforts will likely focus on scaling operations and enhancing technological infrastructure to meet the growing customer base. However, the path forward is not without challenges. Varo Bank must navigate regulatory hurdles and intense competition from both traditional banks and fintech startups to maintain its growth trajectory.
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