Chime raises $485mn in series F funding round
US neobank Chime has raised $485mn in its recent series F funding round, making it the most valuable American fintech start-up serving retail consumers.
San Francisco based Chime is a mobile bank that offers a user-friendly banking experience through its app and accompanying debit card with no fees. According to a report by CNBC, the company has raised $485mn in series F funding, crowning it the most valuable US-based consumer fintech with its new $14.5bn valuation.
In December 2019, the digital bank was valued at $1.5bn, meaning it is now worth almost 900% more than it was 18 months ago. Like many tech-centric companies and challenger banks, Chime has seen a surge in revenue during the COVID-19 pandemic. In fact, Chief Executive Officer, Chris Britt told CNBC that the company experienced a tripled transaction volume and revenue this year.
“Nobody wants to go into bank branches, nobody wants to touch cash anymore, and people are increasingly comfortable living their lives through their phones,” Britt explained. “We have a website, but people don’t really use it. We’re a mobile app, and that’s how we deliver our services.”
According to Chris Britt, the investors now include hedge funds that take stakes in both private and public companies. Firms that participated in Chime’s latest round include Coatue, Iconiq, Tiger Global, Whale Rock Capital, General Atlantic, Access Technology Ventures, Dragoneer and DST Global.
“We’re more like a consumer software company than a bank,” he said. “It’s more a transaction-based, processing-based business model that is highly predictable, highly recurring and highly profitable.”
Chime continues its rocket growth, reportedly adding hundreds of thousands of new accounts every month, although the exact number of its users is not known. Looking to the future, the firm plans to possibly go public next year but has expressed that there are a number of actions to be made before it will be market-ready.
