The boost comes after the San Francisco-based challenger bank secured a US national bank charter
Varo has raised a staggering $510mn in a Series E funding round.
The firm’s valuation rose to $2.5bn from approximately $700mn.
Varo stands out as the first fully regulated Neo bank - having won the first national charter for a consumer fintech firm in July 2020.
What does this mean?
By owning its own bank, Varo has an array of funding and cost advantages compared to most of its Neo bank competitors who partner with FDIC-backed banks to handle deposits. Varo also doubled its customer accounts to four million and tripled revenue in the 13 months since getting its charter.