Fintech Varo Raises $29 Million in Series G Round

Fintech company Varo has secured $29 million in funding to date as part of its Series G round, according to a recent SEC filing. The company had initially aimed to raise $55 million.

Varo has declined to comment on the new funding round. However, the fintech has raised over $1 billion in funding since its inception in 2015, according to PitchBook. The news of the raise was first reported by Fintech Business Weekly author Jason Mikula and Crowdfund Insider.

Previous Fundraising Efforts

This is not the first time Varo’s fundraising efforts have fallen short of expectations. In 2023, the company raised a $50 million equity round at a lower valuation of $1.85 billion post-money, compared to its $510 million Series E round in 2021, which valued the company at $2.5 billion post-money.

Leadership Transition

In a surprise move, Varo’s CEO and founder Colin Walsh recently announced his decision to step down, with Gavin Michael taking over as chief executive. Michael previously served as CEO of the publicly traded cryptocurrency exchange Bakkt and has held leadership roles at Citi and JPMorgan Chase.

A company spokesperson denied speculation that Walsh was forced to resign, stating that the transition is about the next phase of Varo’s evolution. The spokesperson highlighted Michael’s experience and leadership skills as being “exactly what Varo needs for its next chapter.”

Walsh will remain on Varo’s board and maintain a significant stake in the company. According to the spokesperson, Walsh is confident that Michael is the right leader to build on the company’s foundation and maintain its commitment to financial inclusion.

Varo’s History and Performance

Varo was a highly watched fintech in its earlier years, having obtained its national bank charter in 2020. However, as of early 2024, the company was not yet profitable, reporting a loss of nearly $65 million in a December 2024 call report.

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