As it closes in on a national bank charter, San Francisco-based mobile banking startup Varo Money has raised $241 million in a Series D funding round.
The round was co-led by Gallatin Point Capital and existing investor The Rise Fund, which was founded by U2's Bono with movie producer Jeff Skoll and TPG. Other new investors include HarbourVest Partners and Progressive Insurance
Co-founded by former Wells Fargo executive Colin Walsh, Varo Money has raised $419.4 million in funding over the past two years and currently provides a range of savings, loans and account-based services through a relationship with The Bancorp Bank.
It is poised to become the first and only fully digital bank to receive a national charter this summer, after which it will expand its services to offer credit cards, loans, and additional savings products.
Says Walsh: “As the first fully digital bank, Varo will bring our mission of financial inclusion to life and create more financially resilient - and thus healthier and stronger - communities. This new investment will enable us to complete the chartering process and leverage our modern banking technology to build on our track record of innovation and inclusion.”