Go more than, Robinhood – Chime is now the most valuable U.S.-based consumer fintech.
According to CNBC, Chime, a so-called neobank that provides branchless banking services to customers, has become worth $14.5 billion, besting the price tag of substantial retail trading wedge 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 the new valuation of its via a sequence F financial support round to the tune of $485 million coming from investors such as 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 its seven-year life. Chime first come to one million owners in 2018, and also has since additional large numbers of consumers, however, the company has not believed the number of users it currently has in complete. Chime offers banking products via a mobile app as well as no-fee accounts, debit cards, paycheck developments, and absolutely no overdraft fees. With the study course of the pandemic, financial savings balances attained all time highs, CEO Chris Britt told Fortune returned in May.
Britt told CNBC the competitor bank account will be poised for an IPO within the next 12 months. And it is up in the air whether Chime will go the method of others just before it and opt for a particular purpose acquisition organization, or perhaps SPAC, to go public. “I possibly get phone calls from 2 SPACS a week to determine if we are thinking about getting into the marketplaces quickly,” Britt told CNBC. “The reality is we have a number of initiatives we wish to complete over the next 12 months to place us in a spot to be market-ready.”
The opposition bank’s quick progression has not been with no difficulties, however. As Fortune claimed, back in October of 2019 Chime endured a multi day outage that left quite a few customers struggling to access their cash. Sticking to the outage, Britt told Fortune in December the fintech had increased capability and worry testing of its infrastructure amid “heightened attention to performing them in an even more strenuous alternative provided the size and also the pace of development that we have.”