SAN FRANCISCO — Varo Bank, America’s first all-digital nationally chartered bank, has received a $63 million funding round led by NBA star Russell Westbrook of the Washington Wizards. Westbrook — a nine time NBA All-Star, NBA MVP, entrepreneur, philanthropist, and designer will join Varo as an investor and advisor where he will have direct input into the future direction of Varo’s impact programs inclusive of communities of color and African American communities.
Russell Westbrook Enterprises, who was exclusively advised by Jefferies LLC in this transaction, led the investment round of $63 million. This fundraise will support Varo’s continued investment in its social impact mission and further development of the product roadmap including additional credit, savings, and transaction banking features.
Russell Westbrook Enterprises joins Varo’s existing major investors including Warburg Pincus, The Rise Fund, Gallatin Point Capital, HarbourVest Partners, and funds managed by BlackRock.
Varo was created to make a measurable impact on financial inequality and address issues of access, fairness, and fees that have often had a discriminatory legacy. Varo has been designed from the outset to deliver premium, affordable banking services to all Americans. This founding ethos inspired Mr. Westbrook to engage directly with Varo, with the goal of advancing this cause in underserved communities and communities of color.
“The banking system has ignored or underserved a large portion of the American population – particularly communities of color. I’m passionate about making lasting social change and creating a stronger and more inclusive system,” said Westbrook, who played college basketball at UCLA. “I am excited and ready to work with Varo to be a part of an economic revitalization for those who never had the access they deserved.”
“The Varo team is thrilled Russell is joining us on our trailblazing journey as the only all-digital, mission-driven national bank in the country,” said Colin Walsh, founder and CEO of Varo Bank. “We both share a view that banking can be – and needs to be – a force for good. Russell is a visionary and his energy and passion for design, product excellence, and community impact will help propel Varo’s next phase of growth. “Working together will accelerate our efforts to reimagine banking for all of us.”