American mobile banking startup Varo Money has closed a $45m Series B funding round led by existing investor Warburg Pincus and The Rise Fund, a global impact fund led by private equity firm TPG.
The latest funding round was joined by 30 additional participants including angels, existing investors and management.
Varo Money intends to use the funds to further the growth of its banking app. With the closing of this round, Varo has raised over $78m in less than two years.
Varo Money co-founder and CEO Colin Walsh said: “As a company, we are extremely motivated by our mission of improving consumer financial health, which is why we are so honored by this investment from The Rise Fund and continued support from Warburg Pincus and our community of investors.
“This funding round is a huge vote of confidence in our strategic direction and progress toward our goal to provide millions of Americans with access to a bank account that’s designed to help them get more out of their money,” Walsh added.
Warburg Pincus special limited partner David Coulter said: “Since our initial investment in 2016, Colin and his team have made significant progress in advancing Varo’s innovative platform and growing its user base. The company is well-positioned to deliver a unique banking service to its customers, and we look forward to supporting its continued growth.”
The Rise Fund senior partner Maya Chorengel said: “Within financial services, which is a key sector for The Rise Fund, we see tremendous opportunity for disruption and innovation that will help more consumers save regularly, spend wisely and borrow responsibly. We’re looking forward to working with Colin and his team to advance Varo’s mission of creating real value and positive impact for customers in a way that is simple and intuitive.”
Varo applied to the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) for a national bank charter in July 2017.