Varo Bank, a San Francisco, CA-based all-digital, nationally chartered bank, closed a $510m 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, as well as existing investors Warburg Pincus, The Rise Fund, Gallatin Point Capital, and HarbourVest Partners.
The company intends to use the funds to further accelerate customer growth and investment in product and technology innovation.
Led by Colin Walsh, CEO and founder, Varo Bank offers customers premium bank accounts that have no minimum balance requirement or monthly account fee, savings accounts, and tech-first features to help people save and manage their money.
In the last 13 months since obtaining its bank charter, Varo doubled its opened accounts to four million. In addition, the company has tripled its revenue, and expanded its suite of innovative financial products to include Varo Advance, a short-term line of credit, Varo Perks cashback rewards, and the forthcoming Varo Believe credit building credit card program. In addition, employee count has nearly doubled, with the company expanding into a third hub in Charlotte, North Carolina.