Move over, Robinhood – Chime is now the most valuable U.S. based customer fintech.
According to CNBC, Chime, a so-called neobank offering branchless banking services to customers, is now worth $14.5 billion, besting the price tag of significant list trading wedge Robinhood at about $11.2 billion, as of mid August, per PitchBook data. Business Insider also reported about the possible new valuation earlier this week.
Chime locked in its new valuation through a series 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 noticed enormous advancement over the seven-year life of its. Chime primary arived at 1 million owners in 2018, and also has since additional millions of customers, although the business hasn’t said the number of customers it currently has in total. Chime provides banking services through a mobile app including no fee accounts, debit cards, paycheck advancements, and simply no overdraft fees. Over the course of the pandemic, cost savings balances achieved all-time highs, CEO Chris Britt told Fortune back 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 way of others just before it and choose a special purpose acquisition business, or perhaps SPAC, to go public. “I possibly get messages or calls from two SPACS a week to determine in the event that we are interested in getting into the markets quickly,” Britt told CNBC. “The reality is we have a selection of initiatives we wish to complete over the following twelve months to put us in a spot to be market-ready.”
The challenger bank’s rapid progression hasn’t been with no challenges, however. As Fortune noted, back in October of 2019 Chime endured a multi-day outage which left quite a few customers unable to access their money. Following the outage, Britt told Fortune in December the fintech had increased potential and worry tests of its infrastructure amid “heightened attention to performing them in an even more strenuous way given the speed and the size of development that we have.”