Proceed more than, Robinhood – Chime has become the most valuable U.S. based customer fintech.
According to CNBC, Chime, a so called neobank that provides branchless banking services to clients, has become worth $14.5 billion, besting the price tag of massive retail trading platform Robinhood at about $11.2 billion, as of mid August, a PitchBook data. Business Insider also claimed about the potential new valuation earlier this week.
Chime locked in its brand new valuation through a sequence F funding 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, a CNBC.
The fintech has viewed huge development over the seven-year existence of its. Chime first reached one million drivers in 2018, and has since extra large numbers of consumers, even thought the company hasn’t said the number of users it currently has in complete. Chime provides banking products through a mobile app such as no-fee accounts, debit cards, paycheck developments, and no overdraft charges. With the course of the pandemic, cost savings balances attained all time highs, CEO Chris Britt told Fortune returned in May.
Britt told CNBC the challenger bank account would be poised for an IPO in the next 12 months. And it is up in the atmosphere whether Chime will go the means of others before it and choose a special objective acquisition company, or perhaps SPAC, to go public. “I likely get messages or calls coming from 2 SPACS a week to see if we are thinking about getting into the markets quickly,” Britt told CNBC. “The reality is we have a selection of initiatives we want to complete over the following twelve months to set us in a position to be market-ready.”
The challenger bank’s fast progress hasn’t been with no difficulties, however. As Fortune reported, back in October of 2019 Chime suffered a multi-day outage that left many customers unable to access the money of theirs. Sticking to the outage, Britt told Fortune in December the fintech had increased capability and pressure tests of its infrastructure amid “heightened consciousness to carrying out them in a more rigorous option given the speed and also the dimensions of development that we have.”