The San Francisco-based online-only bank raised the amount at an undisclosed valuation to launch its product, with the ultimate aim of seeking a banking charter.
Warburg Pincus was the sole investor in the round.
CEO Colin Walsh said he co-founded the Varo Money to help users develop positive spending and borrowing habits. Walsh previously served as CEO of the United Kingdom for American Express. For now, Varo plans to provide debit card, deposit and lending products via a mobile app and a 24/7 digital financial coach that offers analysis of spending and real-time budgeting. The company will start testing its app later this year.