Varo Money, Inc., a San Francisco, CA-based mobile banking company, closed a $241m USD Series D funding round.
The round was 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, with participation from HarbourVest Partners and Progressive Insurance.
The company, which has raised a total of $419.4m to date, intends to use the funds to accelerate growth and innovate across a range of financial products.
Led by Colin Walsh, founder and CEO, Varo Money provides a mobile app that offers customers premium bank accounts with no minimum balance requirement or monthly fee, savings accounts, and features to save and manage their money. Varo Personal Loans are offered by Varo Money, Inc., under state licenses, subject to application approval.
The company, which also offers fee-free ATM withdrawals with its network of more than 55,000 ATMs worldwide, 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, 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.