Varo Bank, the first all-digital nationally chartered bank in the U.
S., has raised a $123.9 million growth investment in its Series G round, led by existing investor Warburg Pincus and new investor Coliseum Capital Management, LLC, with additional funding from existing investors including Northview.
The investment coincides with the appointment of Alice Milligan, former chief marketing officer at Morgan Stanley, and Kevin Watters, former division chief executive officer at JP Morgan, to Varo Bank’s Board of Directors. Varo Bank CEO Gavin Michael stated that this new capital, Coliseum’s partnership, and the addition of experienced banking leaders to the board are expected to propel Varo into its next phase of growth, while maintaining a focus on operational discipline and customer impact.
Since launching its app in 2017, Varo has developed a platform designed to provide comprehensive financial tools to consumers. The platform integrates proprietary machine-learning models to complement traditional credit data, aiming to expand lending access beyond conventional credit scoring methods.
Through its Varo Advance and Varo Line of Credit lending products, Varo generated $547 million in lending volume in 2025, indicating demand for its credit offerings. The bank also provides high-yield savings accounts and cashback debit card incentives to encourage deeper platform engagement across its lending, banking, and credit-building services.
In 2025, Varo also reported efficiency gains through cost reductions alongside revenue growth. Chris Shackelton, co-founder and Managing Partner of Coliseum Capital Management, expressed confidence in Varo’s leadership and growth potential, citing the firm’s intention to support Varo’s efforts to expand its customer value proposition and differentiate from traditional banking institutions.
Milligan and Watters, new members of Varo Bank’s Board of Directors, noted that Varo has established a technology-first customer experience combined with the governance and risk management required of a nationally chartered bank. They affirmed their support for scaling Varo’s lending and banking platform for consumers, leveraging the new capital and existing foundation for disciplined growth.
Varo Bank positions itself as a nationally chartered all-digital consumer bank focused on the needs of everyday Americans, offering services from credit building with Varo Believe to savings and faster payments. The institution combines technology company capabilities with regulatory oversight, enabling the agile development of solutions like Varo Believe, Varo Advance, and high-yield savings accounts. Varo has received recognition, including being named among Inc. 5000’s 2025 fastest-growth companies, CNBC’s 2023-2025 list of the World’s Top Fintech Companies, Forbes’ World’s Best Banks, and Fast Company’s Most Innovative Companies.
