Varo Bank triples valuation to $2.5 billion after gaining bank charter

Varo Bank has more than tripled its valuation after gaining a national banking charter last year, CNBC has learned.

The company is set to announce Thursday that it raised $510 million in a Series E round led by hedge fund Lone Pine Capital and including dozens of new and existing investors. The firm’s valuation rose to $2.5 billion from approximately $700 million after its previous fundraising, according to people with knowledge of the matter.

Varo is the latest digital bank to garner a multibillion-dollar valuation while attracting millions of new customers who are dissatisfied with traditional institutions. But unlike larger competitors like Chime…