Varo Bank, the first all-digital nationally chartered bank in the U.S., has raised $123.9 million in Series G funding led by existing investor Warburg Pincus and new investor Coliseum Capital Management, with continued participation from investors including Northview. The growth investment strengthens Varo’s balance sheet as it scales its technology-driven banking and lending platform, while also expanding its Board of Directors with the addition of Alice Milligan, former CMO of Morgan Stanley, and Kevin Watters, former division CEO at JPMorgan.
Also Read: DC Capital Partners Makes Majority Investment in Knexus
“This combination of new capital, Coliseum’s partnership, and experienced banking leaders joining our board, is propelling Varo into its next phase of growth,” said Varo Bank CEO Gavin Michael. Since launching in 2017, Varo has leveraged proprietary machine-learning models to expand credit access, generating $547 million in lending volume in 2025 through products such as Varo Advance and Varo Line of Credit. “This investment reflects our confidence in Varo’s leadership team and uniquely compelling growth potential,” said Chris Shackelton, co-founder and Managing Partner of Coliseum Capital Management.
