Fintech Varo is hoping to raise a $55 million Series G round so far, according to a recent SEC filing, but has so far been closed at $29 million.
Varo declined to comment on the new round, but according to Pitchbook, FinTech has raised over $1 billion in funding since its launch in 2015. Fintech Business Weekly author Jason Mikula and CrowdFund Insider reported news of pay increases earlier this week (here and here).
It’s not the first time that that funding hasn’t been done as expected from Varo. In 2023, Varo raised a $50 million share round ($1.855 billion in money) in 2021 at a lower rating than the $510 million Series E “oversubscribed.” .
In a somewhat surprising move, CEO and founder Colin Walsh recently announced he was resigning. (Michael was previously CEO of the public cryptocurrency exchange Bakkt. His LinkedIn profile shows that he took on a leadership role at Varo in November 2024.)
When asked about speculation that Walsh had been forced to resign, a company spokesperson denied it, telling TechCrunch:
The spokesman pointed out Michael’s experience as CEO of Bakkt and the previous leadership role for Citi and JP Morgan Chase as “what Varo needs in the next chapter.”
“Colin has known Gavin for 19 years. After working closely with him for the past few months, Collin has built the foundation for the company he has built for the past decade and maintains Valo’s commitment to financial inclusion. I’m sure there will be.” The spokesman added.
Walsh remains on Vallo’s board of directors and as founder, he maintains a large stake in the company, the spokesman said.
Baro was a highly viewed fintech in previous years as the startup acquired the National Bank Charter in 2020. In a 2022 interview with TechCrunch, Walsh said the company still has a “clear path to profitability” and “still has strong customer growth.” However, in early 2024, the company was still not making any profits. It also reported a loss of nearly $65 million, according to a December 2024 call report.
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