The Progressive-backed neobank has secured the fresh funding at a reported $2.5bn valuation, seven months after it closed a $63m round.

Varo Bank, a US-based digital bank that counts automotive insurance provider Progressive as a backer, raised $510m yesterday in a round led by investment manager Lone Pine Capital.

Declaration Partners, Eldridge, Marshall Wace, Berkshire Partners’ Stockbridge unit and funds and accounts managed by BlackRock took part in the round, as did Gallatin Point Capital, HarbourVest Partners, TPG’s The Rise Fund and Warburg Pincus. It valued the company at $2.5bn, according to Reuters.

Founded in 2015, Varo provides digital banking services…

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Edison Fu

Edison Fu is a reporter and Asia liaison at Global Corporate Venturing.
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