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Website: www.varomoney.com
Sector: FinTech
Headquarters: Redwood City, California, United States
Staff number: 800
Year Established: 2015
Terms of Investments
Commission: 20% of profit
Login fee: 3.5%
Commission for exit: 2.5%
Recommended investment period: 3 years
Minimum investment period: from 1 year
Detailed info about the company
Total amount of investments : $992.4M
Number of investors: 22
Founders: Assaf Guery, Colin Walsh, Mykola Klymenko, Roger Van Duinen
Capitalization table
| Round | Date | Number of investors | Amount of attractions | Leading investors |
| Series E | Sep 9, 2021 | 11 | $510M | Lone Pine Capital |
| Corporate Round | Feb 18, 2021 | 1 | $63M | Russell Westbrook Enterprises |
| Series D | Jun 3, 2020 | 10 | $241M | Gallatin Point Capital,Jeffrey S. Skoll, Paul Hewson (Bono), The Rise Fund |
| Series C | Jul 16, 2019 | 4 | $100M | – |
| Series B | Jan 18, 2018 | 3 | $45M | The Rise Fund, Warburg Pincus |
| Series B | Jan 1, 2018 | 1 | – | – |
| Debt Financing | Jan 15, 2017 | 1 | $5M | – |
| Private Equity Round | May 2, 2016 | 1 | $28.4M | Warburg Pincus |
About company
Varo bank offers the usual mix for American millennials: a free online account with no overdraft fees, paychecks two days early, internal PFM service, chatbot and phone support, cash withdrawals at any ATM without fees and nice increased rates on savings accounts valid only until you reach the $10,000 threshold – the bank is a fitting response to tough times. Neobank itself essentially provides only the interface, while the bank accounts are at another bank, The Bancorp Bank, which insures them.
Key investors
Lone Pine Capital, Russell Westbrook Enterprises, Gallatin Point Capital,Jeffrey S. Skoll, Paul Hewson (Bono), The Rise Fund, The Rise Fund, Warburg Pincus
GSI Company Rating
In 5 years the fintech startup came to a certain popularity – more than 4 million app downloads and more than 2 million active accounts. The bank earned its second million accounts in less than a year, and since the beginning of 2020, its audience growth rate has increased by 60%, spending by 50%, and deposits by 250%. Now the total amount of deposits is more than $6.6 billion. The tremendous growth did not leave investors indifferent: In the last round, the bank attracted a record $510 million, which exceeded investments for all previous rounds.
We expect at least one more round of fundraising, possibly in 2022. With this round, we may see the stock grow by at least 100%.
