Varo Bank Raises $123.9M Growth Round for Digital Banking Platform

Varo Bank closed a $123.9 million growth funding round in February 2026, reinforcing its position as a leading US digital-first banking platform. Varo is notable for being one of the few consumer fintechs to hold its own national bank charter, rather than relying on a bank partner for BaaS. The funding is expected to support ongoing product expansion and customer acquisition.

The raise was part of a strong February for fintech funding, which totaled over $1.02 billion across 29 rounds. Varo's continued ability to attract significant capital demonstrates investor confidence in the charter-holding digital bank model. The round highlights the ongoing competition between chartered digital banks and fintech-bank partnership models in the US consumer banking space.