Varo Money, Inc., a San Francisco, CA-based mobile banking startup, closed a $45M Series B funding.
The round was led by existing investor Warburg Pincus and The Rise Fund with participation from thirty additional participants – including angels, existing investors and management.
The company, which has raised more than $78M in less than two years, intends to use the funds to further grow its banking app.
Led by Colin Walsh, co-founder and CEO, and Kolya Klymenko, CTO, Varo Money is using mobile technology to offer customers a bank account that integrates banking, saving and lending products with tools to smooth cash flow and build savings, all from their phones.
The product also wants to eliminate fees that traditional banks often charge, such as overdraft fees, minimum balance fees and foreign transaction fees. In addition, Varo does not charge ATM fees at a network of over 55,000 Allpoint ATMs worldwide.
In July 2017, the company applied to the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) for a national bank charter, which would allow the company to offer customers nationwide access to a full range of products and solutions and the highest standards of consumer protection. Its bank accounts are provided by The Bancorp Bank, and deposits are FDIC-insured up to $250,000 through The Bancorp Bank.