Fintech, Finance, Technology, Banking Highlights – 22 January 2018
Varo Money Closes $45M Series B Financing Round
Varo Money, a mobile banking startup, announced that it has closed a $45M Series B funding round led by existing investor Warburg Pincus, a global private equity firm focused on growth investing, and The Rise Fund, a global impact fund led by private equity firm TPG.
The Rise Fund is committed to achieving social impact alongside competitive financial returns and was founded by TPG Growth Founder and Managing Partner Bill McGlashan, U2 lead singer Bono (a well-known activist and a special partner with TPG Growth), and Jeff Skoll, a global entrepreneur, film producer and impact investor. 30 additional participants — including angels, existing investors and management — were included in the funding round, which will be used to further the explosive growth of Varo’s banking app, which improves the financial lives of its customers. With the closing of this round, Varo will have raised more than $78M in less than two years.
“We founded Varo because we believe that customers simply deserve better banking options,” said Colin Walsh, co-founder and CEO of Varo Money. “Millions of Americans are looking for an easier, more affordable way to manage their money and reach their financial goals. As a company, we are extremely motivated by our mission of improving consumer financial health, which is why we are so honored by this investment from The Rise Fund and continued support from Warburg Pincus and our community of investors. This funding round is a huge vote of confidence on our strategic direction and progress toward our goal to provide millions of Americans access to a bank account that’s designed to help them get more out of their money.”
Kenneth I. Chenault Joins Facebook Board of Directors
Facebook today announced that Kenneth I. Chenault, the CEO of American Express, has been appointed to the company’s board of directors, effective February 5, 2018.
Mark Zuckerberg, Founder and Chairman/CEO of Facebook said: “I’ve been trying to recruit Ken for years. He has unique expertise in areas I believe Facebook needs to learn and improve — customer service, direct commerce and building a trusted brand. Ken also has a strong sense of social mission and the perspective that comes from running an important public company for decades.”
“I’m delighted to join the board and look forward to working with Mark and the other directors as Facebook continues to build communities that help bring people closer to friends, family and the world around them,” said Kenneth I. Chenault.
Mr. Chenault has been Chairman and Chief Executive Officer of American Express Company since April 2001. Mr. Chenault joined American Express in 1981 and was named President of the US division of American Express Travel Related Services Company, Inc. in 1993; Vice Chairman of American Express Company in 1995; President and Chief Operating Officer in 1997; and Chief Executive Officer in January 2001. Mr. Chenault holds a B.A. in history from Bowdoin College and a J.D. from Harvard Law School.
Flywire acquires OnPlan
International payments startup Flywire has made its fourth acquisition, bringing the Boston-based company’s global headcount to roughly 250. The company announced on Thursday that it acquired OnPlan Holdings, the Chicago-area parent company of OnPlanU and OnPlan Health, which provide payments solutions for higher education institutions and healthcare organizations, respectively.
Flywire, which has raised a total of $43 million from investors, has acquired PACE Invoice, ScholarFX and Uni-Pay over the past three years to build out its capabilities as an international payments servicer in the education, healthcare and business sectors.
With the acquisition of OnPlan, the company said it is now “the first in the industry” to provide an end-to-end international payments solution, which includes invoicing, secure payment processing, consumer engagement and automated payment plans, among other capabilities.
