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After raising $1 billion, fintech Varo closes another $29 million, replacesfounder CEO
Fintech Varo has raised $29 million in its Series G round, falling short of its $55 million goal. The company has raised over $1 billion since 2015. CEO Colin Walsh stepped down and was replaced by Gavin Michael, signaling a new phase for Varo, which remains on a path to profitability despite recent losses.
Key points
- Varo raised $29 million in its Series G funding round, aiming for $55 million.
- The company has raised over $1 billion since its founding in 2015.
- In 2023, Varo experienced a down round, raising $50 million at a lower valuation than earlier in 2021.
- Colin Walsh stepped down as CEO; Gavin Michael took over to lead Varo's next phase.
- Michael's background includes leadership roles in Bakkt, Citi, and JPMorgan Chase.
- Walsh will remain on Varo's board and retains a significant stake.
Why it matters
- Varo was the first all-digital nationally chartered U.S. consumer bank as of 2020.
- The fintech industry has seen a volatile investment climate, with fluctuating valuations in recent years.
- The shift in leadership may reflect broader trends in fintech, where experienced leadership is sought after during uncertain market conditions.
Varo’s recent funding struggles and leadership changes highlight challenges in the evolving fintech landscape, emphasizing the need for resilience and adaptability amidst financial setbacks and market demands.