Varo Bank Announces Growth Investment Led by Coliseum Capital Management

Varo Bank Announces Growth Investment Led by Coliseum Capital Management

SAN FRANCISCO--(BUSINESS WIRE)--Feb 2, 2026-

Varo raises $124 million despite widening net losses

The digital bank added two new board members and raised $123.9 million as it continues to manage regulatory costs amid its push for profitability.

Varo Raises $123.9 Million to Scale its Lending and Banking Platform

Varo raised $123.9 million in a Series G round led by Warburg Pincus and Coliseum Capital. The bank will use the investment to scale its chartered banking and lending platform. Alice Milligan, former chief marketing officer at Morgan Stanley, and Kevin Watters, former division chief executive officer at JPMorgan, have joined Varo’s Board of Directors. Digital challenger bank Varo landed $123.9 million in financing this week. The Series G round, …

Varo Bank Raises $123.9 Million to Fuel New Stage of Growth

Varo Bank said its all-digital nationally chartered bank is entering a new stage of growth after raising $123.9 million in a Series G round led by existing investor Warburg Pincus and new investor Coliseum Capital Management. The company also added two members to its board of directors, including Alice Milligan, former chief marketing officer at Morgan Stanley, and Kevin Watters, former division CEO at JPMorganChase, it said in a Monda…

Varo Bank raises $123.9m growth round led by Coliseum Capital

Varo Bank has raised $123.9m in a Series G round to fuel growth. Discover how the digital bank plans to scale.