Go over, Robinhood – Chime has become the best U.S.-based buyer fintech.
Based on CNBC, Chime, a so called neobank offering branchless banking services to customers, is now worth $14.5 billion, besting the asking price of significant list trading platform Robinhood at around $11.2 billion, as of mid August, a PitchBook information. Business Insider also reported about the potential brand new valuation earlier this week.
Chime locked in its new valuation via a sequence F funding round to the tune of $485 million coming 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 massive growth over its seven-year existence. Chime primary reached 1 million owners in 2018, and also has since extra millions of buyers, nevertheless, the business enterprise hasn’t believed how many users it currently has in total. Chime provides banking products through a mobile app including no fee accounts, debit cards, paycheck developments, and no overdraft fees. Over the course of the pandemic, financial savings balances reached all-time highs, CEO Chris Britt told Fortune returned in May.
Britt told CNBC the competitor bank will be poised for an IPO within the next 12 weeks. And it’s up in the air whether Chime will go the method of others before it and get a specific objective acquisition business, or perhaps SPAC, to go public. “I almost certainly get messages or calls from two SPACS a week to find out in the event that we’re considering getting into the market segments quickly,” Britt told CNBC. “The reality is we have a number of initiatives we want to complete with the following 12 months to place us in a spot to be market-ready.”
The opposition bank’s rapid progress hasn’t been with no troubles, however. As Fortune claimed, back in October of 2019 Chime suffered a multi day outage that left many customers struggling to access their money. Sticking to the outage, Britt told Fortune in December the fintech had increased capability as well as worry tests of its infrastructure amid “heightened consciousness to carrying out them in a far more arduous way offered the speed as well as the size of development that we have.”