Move over, Robinhood – Chime has become the best U.S.-based consumer fintech.
According to CNBC, Chime, a so-called neobank offering branchless banking services to clients, is currently worth $14.5 billion, besting the asking price of massive retail trading platform Robinhood at about $11.2 billion, as of mid August, a PitchBook details. Business Insider also said about the potential brand new valuation earlier this week.
Chime locked in its brand new valuation through a series F financial support round to the tune of $485 million coming from investors including Coatue, ICONIQ, Tiger Global, Whale Rock Capital, General Atlantic, Access Technology Ventures, Dragoneer, and DST Global, a CNBC.
The fintech has seen enormous expansion over the seven-year life of its. Chime primary arived at one million owners in 2018, and also has since additional millions of buyers, though the business hasn’t said the amount of users it presently has in complete. Chime offers banking products through a mobile app including no fee accounts, debit cards, paycheck advancements, and no overdraft charges. With the program of the pandemic, financial savings balances attained all time highs, CEO Chris Britt told Fortune back in May.
Britt told CNBC the competitor savings account is going to be poised for an IPO within the following 12 months. And it is up in the air whether Chime will go the way of others just before it and opt for a particular objective acquisition business, or maybe SPAC, to go public. “I possibly get phone calls coming from 2 SPACS a week to find out in the event that we’re thinking about getting into the market segments quickly,” Britt told CNBC. “The truth is we’ve a selection of initiatives we wish to complete with the following twelve months to set us in a spot to be market-ready.”
The opposition bank’s quick progress has not been without challenges, however. As Fortune noted, back in October of 2019 Chime suffered a multi day outage that left a lot of customers struggling to access the money of theirs. Sticking to the outage, Britt told Fortune in December the fintech had increased potential and stress tests of the infrastructure of its amid “heightened awareness to carrying out them in a much more arduous option offered the measurements and also the speed of development that we have.”