Varo Money, a mobile-only startup that focuses on financial health, announced Monday it has raised more than $27 million. The global private equity firm Warburg Pincus led the round.
Like many other financial health mobile apps, Varo plans to help consumers achieve better financial outcomes. The San Francisco startup said it plans to partner with a bank and provide customers with deposit and lending products and a debit card. These products will connect to a digital financial coach mobile app that will crunch data to spit out personal finance advice.
Interestingly, Varo says it will also provide access to and integration with popular finance apps through an in-app marketplace – a strategy that a cadre of fintech startups in the U.K. are trying to pursue.
Colin Walsh, who previously served as chief executive of American Express in the U.K., is a Varo co-founder and its chief executive.
“The U.S. banking market is undergoing a huge transformation, and Varo is ideally positioned to offer a unique and unrivalled banking service to our target customer base,” said Walsh in a press release.
Varo will begin live-testing with customers later this year.