Mobile banking company Varo Money, announced it has closed a $241 million USD Series D round, co-led by new investor Gallatin Point Capital and existing investor The Rise Fund, co-founded by TPG, U2 lead singer Bono and Jeff Skoll, a global entrepreneur, impact investor and movie producer. Other new investors joining the round include HarbourVest Partners and Progressive Insurance. J.P. Morgan served as the sole placement agent for the transaction.
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The investment will be used to fuel Varo’s growth and to help Varo innovate across a range of financial products to build the financial resilience of everyday Americans. To date, Varo has raised a total of $419.4 million and is poised to become the first and only fully digital bank to receive a national charter.
“Varo was founded first and foremost to make a powerful impact on systemic financial inequality in communities across this country,” said Colin Walsh, founder and CEO of Varo. “As the first fully digital national bank, Varo will bring our mission of financial inclusion to life and create more financially resilient – and thus healthier and stronger – communities. This new investment will enable us to complete the chartering process and leverage our modern banking technology to build on our track record of innovation and inclusion.”
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“In the midst of all the economic challenges people are facing right now, the digital economy can still be a force for good. Varo’s focus on financial inclusion and the support they offer people to help manage their finances and reduce financial stress really matters at a time when so many American families are struggling in a volatile economy. And that’s why RISE chose to partner with the team at Varo,” said Maya Chorengel, co-managing partner of The Rise Fund.
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