US digital bank has closed on $29 million in funding as part of an investment round targeting a $55 million raise.
Varo has raised over $1 billion to date, but has seen its valuation plummet amid persistent losses. The company last raised $50 million in 2023 at a valuation of $1.5 billion, a steep discount on its $2.5 billion valuation in September 2021 after raising $510 million in Series E financing.
Founded in 2015 by former Wells Fargo executive Colin Walsh, Varo became the first US consumer fintech firm to be granted a national bank charter in 2020, enabling the digital challenger to offer a full suite of FDIC-insured services.
Walsh recently announced he was stepping down, with Gavin Michael, formerly CEO of cryptocurrency exchange Bakkt replacing him as chief executive.