Varo Bank Announces Growth Investment Led by Coliseum Capital Management

$123.9M Raised in Series G Funding and Strengthened Board with New Directors

SAN FRANCISCO--(BUSINESS WIRE)--Varo Bank, the first all-digital nationally chartered bank in the U.S., today announced that it raised a growth investment of $123.9 million. Varo’s Series G round led by existing investor Warburg Pincus and new investor Coliseum Capital Management, LLC. Existing investors, including Northview, further increased their investment in the company.

Varo also announced today that Alice Milligan, former chief marketing officer at Morgan Stanley, and Kevin Watters, former division chief executive officer at JP Morgan, have joined its Board of Directors.

“This combination of new capital, Coliseum’s partnership, and experienced banking leaders joining our board, is propelling Varo into its next phase of growth,” said Varo Bank CEO Gavin Michael. “We remain focused on operating with discipline and delivering meaningful impact for our customers.”

Since launching its app in 2017, Varo has built a platform focused on bringing modern and comprehensive financial tools to everyday consumers. The platform leverages proprietary machine-learning models to supplement traditional credit data and broaden lending access beyond conventional credit scoring. Through its Varo Advance and Varo Line of Credit lending products, Varo has generated $547 million in lending volume in 2025, reflecting a growing demand for its credit products. With competitive high-yield savings and cashback debit card offers, Varo is driving deeper platform adoption and customer value across its comprehensive lending, banking and credit-building offerings. Along with this growth, the bank drove efficiency gains by reducing costs while delivering revenue growth in 2025.

“This investment reflects our confidence in Varo’s leadership team and uniquely compelling growth potential,” said Chris Shackelton, co-founder and Managing Partner of Coliseum Capital Management. “We are thrilled to join Warburg Pincus as long-term, collaborative partners, and support Varo’s work to expand its customer value proposition and to further differentiate from traditional banks. We believe Varo is building a resilient and scalable platform from which to capitalize on a significant market share opportunity.”

“Varo has built something rare: a technology-first customer experience paired with the governance and risk discipline required of a nationally chartered bank,” said Alice Milligan and Kevin Watters, Varo Bank Board of Directors. “With this new capital and a strong foundation for disciplined growth, we’re excited to support the next phase of scaling Varo’s lending and banking platform for everyday consumers.”

About Varo Bank

Varo Bank is the first nationally chartered all-digital consumer bank in the U.S., built from the ground up with a focus on the needs of everyday Americans. From credit building to savings to faster payments, Varo has a complete solution to help people make progress in their financial lives. Varo combines the capabilities and nimbleness of a technology company with the security and oversight of a regulated financial institution, enabling agile product design that provides technology-first solutions such as Varo Believe, a secured card to help build credit; Varo Advance, to help stretch hard-earned dollars between paychecks; and a high-yield savings account, offering one of the nation's highest APYs. Varo has been named as one of the Inc. 5000’s 2025 fastest growth companies in the U.S., CNBC's 2023-2025 list of the World's Top Fintech Companies, one of Forbes' World's Best Banks, and Fast Company's Most Innovative Companies. For more information on Varo Advance, Varo Believe, and other offerings such as Perks, visit www.varomoney.com, like Varo Bank on Facebook, and follow us on Instagram, TikTok, and X @varobank. ©2025 Varo Bank, N.A. Member FDIC.