Proceed more than, Robinhood – Chime is now the best U.S. based buyer fintech.
According to CNBC, Chime, a so called neobank offering branchless banking services to buyers, is now worth $14.5 billion, besting the sale price of massive retail trading platform Robinhood at around $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 the brand new valuation of its through a series F financial backing round to the tune of $485 million from investors including Coatue, ICONIQ, Tiger Global, Whale Rock Capital, General Atlantic, Access Technology Ventures, Dragoneer, and DST Global, a CNBC.
The fintech has noticed massive growth over its seven-year existence. Chime first reached 1 million owners in 2018, and has since extra millions of purchasers, though the business has not said the number of users it presently has in complete. Chime supplies banking services via a mobile app as well as no fee accounts, debit cards, paycheck developments, and no overdraft charges. With the course of the pandemic, cost savings balances achieved all-time highs, CEO Chris Britt told Fortune back in May.
Britt told CNBC the opposition savings account is going to be poised for an IPO within the following twelve weeks. And it is up in the air whether Chime will go the means of others before it and choose a specific objective acquisition company, or SPAC, to go public. “I most likely get calls coming from 2 SPACS a week to see in the event that we’re considering getting into the marketplaces quickly,” Britt told CNBC. “The truth is we have a number of initiatives we wish to go through over the next twelve months to put us in a place to be market-ready.”
The challenger bank’s quick progression has not been with no challenges, however. As Fortune noted, again in October of 2019 Chime suffered a multi day outage that left many customers unable to access their cash. Following the outage, Britt told Fortune in December the fintech had increased potential as well as pressure testing of its infrastructure amid “heightened awareness to performing them in a far more intense alternative given the dimensions and also the pace of growth that we have.”