Mobile banking company Varo Money has closed a USD 241 million USD Series D round, co-led by new investor Gallatin Point Capital and existing investor The Rise Fund.
Other new investors joining the round include HarbourVest Partners and Progressive Insurance. J.P. Morgan served as the sole placement agent for the transaction. The investment will be used to fuel Varo’s growth and to help Varo build financial products.
To date, Varo has raised a total of USD 419.4 million and is poised to become a fully digital bank with a national charter, according to the official press release.
The company officially launched its banking services in July 2017, offering premium banking products through The Bancorp Bank. Varo 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, Varo will receive approval to be a national bank, which is expected in summer 2020. Upon charter approval, Varo will expand its services to offer credit cards, loans, and additional savings products.
During the COVID-19 crisis, Varo has supported customers by prioritising the processing of electronic and paper check Treasury payments and providing individuals who have direct deposit early access to stimulus and unemployment relief funds. The company increased both deposit and ATM limits and accelerated key partnerships that provided direct benefits to customers impacted by the pandemic, including with job platforms Steady and Wonolo.
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