Varo Bank, the first U.S. challenger bank to receive the national bank charter, raised $510 million in Series E funding round led by hedge fund Lone Pine Capital at a reported valuation of ~$2.5 billion bringing the total amount of funds raised by the fintech to ~1 billion. The funding round witnessed participation of new investors Declaration Partners, Berkshire Partners and funds and accounts managed by BlackRock, along with existing backers Warburg Pincus, The Rise Fund, Gallatin Point Capital and HarbourVest Partners. The funds raised would be used to expand the company’s customer base and develop its products and technology platform.
Founded in 2015 by Assaf Guery, Colin Walsh, Mykola Klymenko and Roger Van Duinen, San Francisco based Varo Bank is a digital bank that offers innovative, premium banking services wrapped in inclusive design.
