Varo Bank is a privately held US bank with no parent company or controlling shareholder. A group of investors owns it, led by Warburg Pincus, Lone Pine Capital and Coliseum Capital Management. Its last reported valuation was $1.8 billion in March 2023, and Varo did not disclose a valuation with its February 2026 round.
Varo Bank ownership at a glance
| Item | Detail |
|---|---|
| Ownership type | Private, investor-backed |
| Parent company | None, independent (Varo Bank, N.A. is a subsidiary of holding company Varo Money, Inc.) |
| Largest shareholders | Not disclosed; lead investors include Warburg Pincus, Lone Pine Capital, Coliseum Capital Management and The Rise Fund |
| Latest valuation | $1.8 billion (reported, March 2023) |
| Last funding round | $123.9 million Series G (February 2, 2026) |
| Founded | 2015 |
| Headquarters | San Francisco, California |
| CEO | Gavin Michael (since April 2025) |
Who owns Varo Bank today?
Varo Bank, N.A. is the banking subsidiary of Varo Money, Inc., a private holding company. Varo Money is funded by outside investors. The company does not publish its cap table, so stake percentages are not public.
PitchBook counts 57 investors in Varo and $1.17 billion raised in total, as of its 2026 profile.
Warburg Pincus has the longest record among the lead backers. It co-led the 2020 Series D and committed $25 million of a $50 million raise in 2023, according to a term sheet reported by FinTech Futures. It also co-led the February 2026 Series G.
Coliseum Capital Management joined as a new shareholder in the Series G. Existing investor Northview increased its stake in the same round, Varo said.
Who controls Varo Bank?
No single shareholder controls Varo Bank. Varo has not disclosed any dual-class shares or voting agreements, so control sits with its board and management.
The board added two directors in February 2026. Alice Milligan was chief marketing officer at Morgan Stanley, and Kevin Watters was a division chief executive at JPMorgan.
Gavin Michael runs the company day to day. He succeeded founder Colin Walsh as CEO in April 2025.
Regulators also limit control. Varo holds a national bank charter from the Office of the Comptroller of the Currency, granted in 2020 with FDIC and Federal Reserve approvals. Under US banking law, any investor seeking control of a bank holding company needs regulatory approval first.
Varo Bank’s funding and ownership history
Colin Walsh founded Varo in 2015. Its app launched in 2017, with accounts held at partner The Bancorp Bank before Varo had its own charter.
In June 2020, Varo raised a $241 million Series D. The OCC granted its national bank charter in July 2020, and Varo Bank, N.A. opened as a full bank.
A $63 million round in February 2021 was led by NBA player Russell Westbrook. CNBC reported Varo’s valuation at about $700 million after that raise.
In September 2021, Lone Pine Capital led a $510 million Series E at a $2.5 billion valuation. Varo then had four million accounts.
Losses followed. Varo reported a net loss of $236.5 million for 2022. In March 2023, it raised $50 million at a reported $1.8 billion valuation, 28% below the 2021 mark.
The February 2026 Series G brought in $123.9 million. Varo said it generated $547 million in lending volume in 2025.
Who are the biggest investors in Varo Bank?
Varo has not published ownership percentages. The investors below have led rounds or appear in Varo’s funding announcements.
- Warburg Pincus, a private equity firm that co-led the 2020 Series D, the 2023 raise and the 2026 Series G.
- Lone Pine Capital, which led the $510 million Series E in September 2021.
- Coliseum Capital Management, which co-led the Series G in February 2026 as a new investor.
- The Rise Fund, TPG’s impact fund, which co-led the 2020 Series D.
- Gallatin Point Capital and HarbourVest Partners, both existing investors by 2021.
- Funds managed by BlackRock, plus Declaration Partners, Eldridge, Marshall Wace and Berkshire Partners/Stockbridge in the Series E.
This spread of minority holders differs from rival Chime, where the co-founders hold most of the voting power through a separate share class.
Is Varo Bank publicly traded?
No. Varo Bank has no stock ticker and does not trade on any exchange. Its shares are held privately.
TechCrunch reported in September 2021 that the Series E came as Varo was eyeing the public markets. Varo has not announced an IPO filing as of November 2026.
That leaves Varo in a different position from Affirm, which trades on Nasdaq. Varo competes for private capital alongside younger companies; fintech startup funding in 2026 reached $28.6 billion in the first half, according to Crunchbase.
FAQ
Who founded Varo Bank?
Colin Walsh founded Varo in 2015 and served as CEO until April 2025, when Gavin Michael replaced him. The app launched in 2017, and the bank received its national charter in 2020.
Does Warburg Pincus own Varo Bank?
No. Warburg Pincus is a long-term minority investor that has led several rounds, including the February 2026 Series G. Its exact stake is not public, and no investor holds disclosed control.
Who is the CEO of Varo Bank?
Gavin Michael has been CEO of Varo Bank since April 2025. He succeeded founder Colin Walsh and has since hired a new chief technology officer and a chief AI and data officer.
How much money has Varo Bank raised?
Varo has raised about $1.17 billion in total, according to PitchBook. Its most recent round was a $123.9 million Series G in February 2026, led by Warburg Pincus and Coliseum Capital Management.
Is Varo Bank FDIC insured?
Yes. Varo Bank, N.A. is a nationally chartered bank and a member of the FDIC, so eligible deposits carry federal deposit insurance up to the standard limits.
