Varo, the fintech company that has raised over $1 billion since its founding in 2015, has recently secured $29 million as part of its ongoing efforts to raise a $55 million Series G round, according to an SEC filing.
Despite declining to comment on this latest funding milestone, Varo’s financing journey has seen its share of ups and downs. The company previously raised $50 million in equity funding in 2023 at a valuation of $1.85 billion post-money—a significant dip from its oversubscribed $510 million Series E round in 2021, which had pegged its valuation at $2.5 billion, according to PitchBook data.
Varo’s leadership is also undergoing a major transition. Founder and longtime CEO Colin Walsh recently announced his departure, with fintech veteran Gavin Michael stepping in as the new chief executive. Michael, formerly the CEO of cryptocurrency exchange Bakkt, brings extensive experience from his previous leadership roles at Citi and JPMorgan Chase.
There has been speculation around Walsh’s exit, but a company spokesperson dismissed any notions of forced resignation, stating that the move aligns with the company’s next phase of growth. According to the spokesperson, Walsh and Michael have had a professional relationship for nearly two decades, and Walsh fully supports Michael’s leadership as Varo continues its commitment to financial inclusion.
As Varo navigates this transitional period, securing additional capital remains a key priority. With $29 million already raised towards its Series G goal, the company is working towards closing the remaining funding and solidifying its position in the competitive fintech landscape