Financial Technology varo According to a recent SEC, $55 million in Series G funding has been raised to date, but has been closed so far. Register.
varo Refused to comment on the new round, but FinTech has raised more than $1 billion in funding since its inception in 2015. tone.
This is not the first time that fundraising is not as good as hoped. In 2023, Varo raised $50 million in stock rounds at an undervalued valuation ($1.85 billion in currency), which it said, “oversubscribe” $510 million Series E According to PitchBook, 2021. The currency valuation in 2021 is US$2.5 billion.
CEO and founder Colin Walsh recently announced that he is resigning Gavin Michael replaces him as CEO (Michael LinkedIn profile Shows that he held a leadership position in Varo in November 2024.
Asked about speculation that Walsh was forced to resign, a company spokesperson denied the situation and told TechCrunch: “This transition is about the next phase of Varo’s evolution.”
The spokesman noted that Michael’s role as CEO of publicly traded crypto platform Bakkt, as well as previous leadership roles for Citi and JPMorgan Chase, was “just what Varo needs for the next chapter.”
“Colin has known Gavin for 19 years and after working closely with him over the past few months, Colin is confident that he is the right leader of the corporate foundation he has built over the past decade, and at the same time, Varo’s commitment to financial inclusion was maintained,” the spokesperson added.
Walsh will remain on Varo’s board and, as the founder, retains a significant stake in the company.
Varo was a high-profile fintech in the early days because of the startup Obtained its National Bank Charter In 2020, the move made it the first time in all-digit national rental of US consumer banks. In 2022 interview Walsh With TechCrunch, the company is “still seeing strong customer growth” and still has “clear pathways to profitability.” But as of early 2024, the company is Not profitable yet. And according to December 2024 call reportreported a loss of nearly $65 million.
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