American digital lender Varo Bank has raised $510 million in an oversubscribed funding round led by Lone Pine Capital.
Declaration Partners, Eldridge, Marshall Wace, Berkshire Partners / Stockbridge, funds and accounts managed by BlackRock, Warburg Pincus, The Rise Fund, Gallatin Point Capital, and HarbourVest Partners joined the round.
Last year Varo became the first US consumer fintech firm to be granted a national bank charter, enabling the digital challenger to offer a full suite of FDIC-insured services.
Since then the firm, co-founded by former Wells Fargo executive Colin Walsh, has doubled its opened accounts to four million, tripled its revenue, and doubled its headcount.
The company has also expanded its product suite, adding a short-term line of credit, cashback rewards, and a forthcoming credit building credit card programme, to its existing savings, loans and account-based services.
Says Walsh: "The time is now to bring the best of fintech to the regulated financial system and build an entirely new kind of bank: one where consumers no longer have to choose between a sophisticated digital experience and a trustworthy banking partner.
"This funding accelerates our path to achieving a profitable, transformative, and sustainable business designed to advance financial inclusion for millions of consumers."