Varo Money Closes $45M Series B to Pursue National Bank Charter

Varo Money closed a $45 million Series B financing round, with the announcement tied to January 18, 2018. The company had previously filed applications with both the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) in July 2017 seeking a national bank charter. Varo aimed to become the first U.S. consumer-focused national bank built entirely for mobile, positioning itself at the intersection of fintech and traditional banking regulation.

The Series B capital was earmarked to support Varo's charter pursuit and continued development of its smartphone-based banking services. At the time, the OCC had signaled in 2017 that fintech firms could apply for special purpose national bank charters, setting the stage for a wave of fintech-bank convergence expected in 2018. Varo's charter was not approved during this period; the company ultimately received its national bank charter in 2020.

The fundraise underscored growing investor confidence in the BaaS and neobank model, where fintech companies seek their own banking licenses rather than relying solely on sponsor bank partnerships.