Varo Bank, N.A., nationally chartered bank in the US, has announced that it has closed a $510 million oversubscribed funding round. The round was led by new investor Lone Pine Capital, who was joined by dozens of additional new investors including Declaration Partners, Eldridge, Marshall Wace, Berkshire Partners / Stockbridge, and funds and accounts managed by BlackRock. These new investors add to a group of existing investors who have also participated in the round including Warburg Pincus, The Rise Fund, Gallatin Point Capital, and HarbourVest Partners. Financial Technology Partners LP and FTP Securities LLC (FT Partners) served as the exclusive financial and strategic advisor to Varo in this transaction.
“The time is now to bring the best of fintech to the regulated financial system and build an entirely new kind of bank: one where consumers no longer have to choose between a sophisticated digital experience and a trustworthy banking partner,” said Colin Walsh, CEO and founder of Varo Bank, N.A. “This funding accelerates our path to achieving a profitable, transformative, and sustainable business designed to advance financial inclusion for millions of consumers.”
“We are thrilled to support Varo’s vision for the future of banking – one that is built on trust and innovation and that scales to millions of consumers,” said David Craver, Portfolio Manager at Lone Pine Capital. “What the Varo team has been able to achieve in such a short time in the market is remarkable, and we look forward to seeing what the future has in store. This is a group of trailblazers who are well on their way to building one of America’s next generation of iconic companies.”
“Partnering with Varo to directly address systemic barriers faced by underserved communities has proven to be an important and unique effort,” said NBA MVP and Varo investor and advisor, Russell Westbrook. “Colin and his team continue to educate users about financial literacy to match the needs of the next generation of bank users regardless of their socioeconomic backgrounds.”
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.