New York | Jan 2018
Gaingels is pleased to announce its participation in a $45MM Series B led by Warburg Pincus and the Rise Fund.
Varo is a mobile-first banking application with an initial focus on four core products: checking, savings, overdraft and term loans. Varo recently became the first tech company to receive a bank charter in the United States.
Varo was founded by financial services veteran Colin Walsh who is known well by several Gaingels members. Colin said: "We are pleased to have Gaingels as an investor as we prepare to open as the first all-mobile national bank in the history of American banking. The success of Varo's innovative platform — and in creating a new model for consumer banking — is helped by powerful networks, like the one we’ve found within Gaingels”.
Company Summary: Though on the market solely through iOS, Varo is growing its customer base rapidly, reporting over 1,200 downloads per day and over 35,000 customers with an account balance.
Retail banking is an over $10 trillion industry, which is currently dominated by large banks. However, their scale and complexity has made it costly to preserve the same kind of valued personal banking relationships and services with all but the wealthiest customers. Therefore, there is significant market potential for Varo as it is the first all-in-one mobile banking solution that offers all basic banking products.