Varo Money Raises $241M Series D While Pursuing National Bank Charter

Varo Money, a mobile banking platform, closed a $241 million Series D funding round on June 3, 2020, marking a significant milestone in its path toward becoming the first consumer fintech to obtain a full national bank charter in the United States. At the time of the raise, Varo had already received preliminary conditional approval from the Office of the Comptroller of the Currency (OCC) and was working to satisfy remaining conditions for final approval from the OCC, FDIC, and Federal Reserve. The funding was intended to support Varo's transition from a partner-bank-dependent model to operating as a fully chartered national bank.

Upon receiving full charter approval, Varo would be able to offer credit cards, personal loans, and other banking products directly to consumers without relying on a sponsor bank. This development represented a landmark moment in the BaaS and embedded finance landscape, as it signaled that digital-first fintechs could pursue independent banking charters rather than remaining dependent on bank-as-a-service partnerships. The Series D round underscored strong investor confidence in Varo's direct banking strategy during a period of heightened demand for digital financial services.