Proceed over, Robinhood – Chime has become the best U.S. based consumer fintech.
Based on CNBC, Chime, a so-called neobank that offers branchless banking services to customers, is now worth $14.5 billion, besting the price tag of significant list trading platform Robinhood at about $11.2 billion, as of mid August, a PitchBook information. Business Insider also claimed about the potential new valuation earlier this week.
Chime locked in the brand new valuation of its via a sequence F financial support round to the tune of $485 million from investors such as Coatue, ICONIQ, Tiger Global, Whale Rock Capital, General Atlantic, Access Technology Ventures, Dragoneer, and DST Global, per CNBC.
The fintech has noticed enormous expansion over the seven-year life of its. Chime first reached one million users in 2018, and has since extra large numbers of buyers, although the company hasn’t claimed the amount of customers it currently has in total. Chime provides banking products by way of a mobile app such as no fee accounts, debit cards, paycheck advances, and no overdraft fees. With the course of the pandemic, savings balances attained all time highs, CEO Chris Britt told Fortune back in May.
Britt told CNBC the opposition bank account will be poised for an IPO in the next twelve weeks. And it is up in the air whether Chime will go the method of others before it and choose a special goal acquisition business, or maybe SPAC, to go public. “I probably get calls from two SPACS a week to determine in the event that we’re thinking about getting into the marketplaces quickly,” Britt told CNBC. “The reality is we’ve a selection of initiatives we wish to go through over the following twelve months to put us in a spot to be market-ready.”
The challenger bank’s fast progress has not been with no difficulties, however. As Fortune claimed, back in October of 2019 Chime endured a multi day outage which left quite a few clients not able to access their funds. Sticking to the outage, Britt told Fortune in December the fintech had increased potential as well as pressure testing of its infrastructure amid “heightened consciousness to performing them in a far more strenuous way offered the speed as well as the size of development that we have.”