Move over, Robinhood – Chime is now the best U.S. based consumer fintech.
According to CNBC, Chime, a so called neobank that offers branchless banking services to clients, is now worth $14.5 billion, besting the price tag of massive retail trading platform Robinhood at about $11.2 billion, as of mid August, a PitchBook information. Business Insider also reported about the potential new valuation earlier this week.
Chime locked in its brand new valuation via a sequence F financial support round to the tune of $485 million from investors like Coatue, ICONIQ, Tiger Global, Whale Rock Capital, General Atlantic, Access Technology Ventures, Dragoneer, and DST Global, per CNBC.
The fintech has viewed huge progress over the seven year lifespan of its. Chime primary come to 1 million users in 2018, and also has since additional millions of customers, nevertheless, the business enterprise hasn’t claimed how many customers it presently has in total. Chime provides banking products via a mobile app including no-fee accounts, debit cards, paycheck advances, and no overdraft charges. Over the program of the pandemic, financial savings balances attained all-time highs, CEO Chris Britt told Fortune returned in May.
Britt told CNBC the opposition bank would be poised for an IPO in the next twelve months. And it’s up in the air whether Chime will go the way of others just before it and get a specific goal acquisition company, or maybe SPAC, to go public. “I possibly get calls coming from two SPACS a week to see if we’re interested in getting into the market segments quickly,” Britt told CNBC. “The truth is we have a selection of initiatives we desire to finish over the following 12 months to place us in a place to be market-ready.”
The competitor bank’s fast progression has not been with no challenges, however. As Fortune claimed, again in October of 2019 Chime put up with a multi-day outage that left many customers unable to access their funds. Sticking to the outage, Britt told Fortune in December the fintech had increased capacity and pressure tests of the infrastructure of its amid “heightened consciousness to performing them in a much more intense way provided the measurements as well as the speed of growth that we have.”