Fintech company Varo has recently raised $29 million in a funding round, bringing its total funding to over $1 billion since its establishment in 2015. Despite aiming for a larger $55 million Series G round, Varo’s latest funding falls short of its initial target.
In a significant change, Varo’s founder and former CEO, Colin Walsh, has stepped down. Gavin Michael, previously CEO of cryptocurrency exchange Bakkt, has taken over as Varo’s new Chief Executive. The company has denied rumors that Walsh’s resignation was involuntary, emphasizing that the transition is part of Varo’s growth strategy.
Varo gained recognition as the first fully digital nationally chartered consumer bank in the US in 2020. Despite its early success, the company has yet to achieve profitability, reporting a loss of $65 million in 2024. However, Varo remains optimistic about its future growth and financial inclusion mission.
With Michael’s experience in the financial industry, including leadership roles at Citi and JPMorgan Chase, Varo aims to build upon its foundation and drive profitability. Walsh will continue to support the company as a board member and shareholder.
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