It’s a well-known fact that if we are to grow rather meaningfully, we must embrace every change in whichever shape or form it arrives. By doing so, we give ourselves every bit of space to take a step in the most optimal direction,. The potential benefits to emerge from such a move, as you would guess, are immense. However, for making the whole process productive, humans end up needing some sort of facilitator that can get them through the rough patches. Now, over the years, we have asked many facilitators to do a comparable job. Each one tried to crack the code in its own way, but none really could do it like technology. While calling technology a mere facilitator feels like a major understatement, that’s exactly what it was meant to be in the initial days. Soon, though, the world will realize the creation’s real potential, and once it happens, things will never remain the same. If we are to assess how it all unfolded, we can look at various spheres that completely bought into technological ideology, including the highly critical financial sector. The link-up between technology and finance was a turning point for many reasons. You see, with an entirely new concept in fintech, the sector will go on to make some huge leaps, except it seems like there are still plenty of offerings left on the table. In fact, a recent investment talks to utilizing those same untapped elements.
The digital bank, Varo has officially raised $510 million in a recently-concluded funding round. According to certain reports, the round was led by Lone Pine Capital, Greenwich, Connecticut hedge fund founded by Stephen Mandel Jr. Apart from it; there were other investors too, including Declaration Partners, Eldridge, Marshall Wace and Berkshire Partners. Prior backers Warburg Pincus, Rise Fund, Gallatin Point Capital, and HarbourVest Partners, who tossed their hat in the ring. With the latest piece of investment, Varo has now raised over $992 million in funding since its inception.
Varo has quickly become a trusted name around the digital banking block. The organization achieved it meritoriously on the back of customer-centric services such as no monthly or overdraft fees, the option of getting your paycheck two days early cash advances on your earnings, and several more. Another factor falling in Varo’s favor is the decision to acquire its own banking charter, which cost the bank in the excess of $100 million. The move, although expensive, provided far better financial prospects to Varo than it would have managed to generate otherwise.
“Of all the fintechs, Varo has the clearest path to profitability due to our diversified revenue streams, lower cost base and capacity to generate our own capital,” says Colin Walsh, founder and CEO of Varo. “We’ve built Varo the right way—with long-term sustainability and business viability in mind.”