Varo Bank announced it has raised $123.9 million in a Series G growth investment led by existing investor Warburg Pincus and new investor Coliseum Capital Management, with additional participation from existing backers including Northview. The financing arrives as the digital bank positions itself for its next phase of expansion, pairing fresh capital with new board appointments it says will deepen oversight and operating expertise.
Alongside the round, Varo announced that Alice Milligan, the former chief marketing officer at Morgan Stanley, and Kevin Watters, a former division chief executive officer at JP Morgan, have joined the company’s Board of Directors. Varo CEO Gavin Michael said the combination of new capital, Coliseum’s partnership, and the board additions will support disciplined growth and help the bank broaden the impact of its products for everyday consumers.
Varo said it has been building its platform since launching its app in 2017, aiming to deliver a suite of consumer banking and credit tools. The company emphasized its use of proprietary machine learning models to supplement traditional credit data, aiming to expand access to lending beyond conventional scoring. It highlighted momentum in its credit offerings, noting that through its Varo Advance and Varo Line of Credit products, it generated $547 million in lending volume in 2025, and said demand for these products has been growing.
The bank also pointed to broader platform engagement driven by high-yield savings and cashback debit card features, while citing efficiency gains that reduced costs alongside revenue growth in 2025. Coliseum said the investment reflects confidence in Varo’s leadership and an opportunity to help the bank further differentiate from traditional institutions as it scales. Milligan and Watters said the company has combined a technology-first customer experience with the governance and risk discipline required of a nationally chartered bank, and that the new funding strengthens Varo’s foundation for disciplined growth.
KEY QUOTES
“This combination of new capital, Coliseum’s partnership, and experienced banking leaders joining our board, is propelling Varo into its next phase of growth. We remain focused on operating with discipline and delivering meaningful impact for our customers.”
Gavin Michael, Chief Executive Officer, Varo Bank
“This investment reflects our confidence in Varo’s leadership team and uniquely compelling growth potential. We are thrilled to join Warburg Pincus as long-term, collaborative partners, and support Varo’s work to expand its customer value proposition and to further differentiate from traditional banks. We believe Varo is building a resilient and scalable platform from which to capitalize on a significant market share opportunity.”
Chris Shackelton, Co-founder and Managing Partner, Coliseum Capital Management
“Varo has built something rare: a technology-first customer experience paired with the governance and risk discipline required of a nationally chartered bank. With this new capital and a strong foundation for disciplined growth, we’re excited to support the next phase of scaling Varo’s lending and banking platform for everyday consumers.”
Alice Milligan, Board of Directors Member, Varo Bank; Kevin Watters, Board of Directors Member, Varo Bank
