Funding round
Varo Growth
Reported as "Growth Equity"
Varo, which works in digital banking services in San Francisco, raised $510M in a Growth round announced on 9 Sep 2021, led by Lone Pine Capital, at a $2.50B post-money valuation. 11 firms took part, 4 of them already investors. It is Varo's fifth venture round on record; the one before was a Growth in Feb 2021.
$510M
Amount raised
$2.50B
Post-money valuation
$1.99B pre-money
11
Investors
1 lead
20%
Stake sold
new money over the post-money
Valuation
What this round says about the price
This round priced Varo at $2.50B after the new money. The $510M bought investors about 20% of the company. It came 7 months after Varo's Growth. It is 47% of the $1.08B Varo has raised in the venture rounds on record. Varo raised again 53 months later: a Series G round of $124M in Feb 2026.
Varo's funding rounds
Varo has 6 venture rounds on record. This one is highlighted.
- Series B 18 Jan 2018, led by TPG and Warburg Pincus $45M
- Series C 16 Jul 2019, led by Warburg Pincus, TPG and Gopher Asset Management $100M
- Series D 3 Jun 2020, led by Gallatin Point Capital and TPG $241M
- Growth 18 Feb 2021, led by Russell Westbrook Enterprises $63M
- Growth this round 9 Sep 2021, led by Lone Pine Capital $510M$2.50B post-money
- Series G 2 Feb 2026, led by Warburg Pincus and Coliseum Capital Management, LLC $124M
Investors
Who put money in
Lone Pine Capital led the round with 10 other firms. Warburg Pincus, TPG, Gallatin Point Capital and HarbourVest had backed Varo before.
Lead investor
- Lone Pine Capital new investor
Also in the round
- backs 24 venture-backed companies new investor
- Eldridge new investor
- Marshall Wace new investor
- backs 14 venture-backed companies new investor
- Stockbridge new investor
- BlackRock new investor
- Warburg Pincus backs 76 venture-backed companies existing investor
- TPG backs 114 venture-backed companies existing investor
- backs 4 venture-backed companies existing investor
- HarbourVest backs 37 venture-backed companies existing investor
Use of proceeds
What the money is for
According to the announcement, the money goes to product development, sales and marketing, scaling operations, working capital and geographic expansion.
- Product development
- Sales and marketing
- Scaling operations
- Working capital
- Geographic expansion
Comparable rounds
How it compares
8 Growth rounds in Banks & ATMs within a year either side disclosed an amount; the median was $138M, and this round was 3.7 times the median. The closest in time, other companies' Growth rounds in Banks & ATMs:
| Company | Announced | Amount | Post-money | Led by |
|---|---|---|---|---|
| Zopa Banks & ATMs | 19 Oct 2021 | $300M | $1.00B | SoftBank Vision Fund and Softbank |
| Monzo Banks & ATMs | 7 Jan 2022 | $100M | $4.50B | not named |
| Banks & ATMs | 21 Feb 2022 | $101M | not disclosed | BBVA |
| Cross River Banks & ATMs | 30 Mar 2022 | $620M | $3.00B | Eldridge and Andreessen Horowitz |
| Banks & ATMs | 21 Mar 2022 | $230M | not disclosed | Apax Partners |
| Starling Banks & ATMs | 26 Apr 2022 | $166M | not disclosed | not named |
| Banks & ATMs | 23 Feb 2021 | $109M | not disclosed | not named |
| Banks & ATMs | 1 Aug 2022 | $30M | not disclosed | not named |
Sources
Where this comes from
Reported by 4 sources.
Questions
Frequently asked
How much did Varo raise in its Growth round?
Varo raised $510M in its Growth round, announced in Sep 2021.
Who led Varo's Growth round?
Lone Pine Capital led it, with Declaration Partners, Eldridge, Marshall Wace, Berkshire Partners and Stockbridge and 5 more.
What was Varo's valuation at the Growth round?
$2.50B post-money ($1.99B pre-money).
How does it compare with other Growth rounds in Banks & ATMs?
8 Growth rounds in Banks & ATMs within a year either side disclosed an amount; the median was $138M, and this round was 3.7 times the median.
Did Varo raise again after this round?
Yes: a Series G round in Feb 2026 of $124M.