Chime CEO Chris Britt
Chime has raised a new round of $ 750 million in Series G funding that the fintech company’s value is $ 25 billion – $ 10 billion more than the last reported value of $ 15 billion since October 2020, according to PitchBook.
Chime, the so-called “challenger bank” known for banking free of charge, early payments for those who pay their earnings directly, and a feature that allows users to move negatively on their accounts without overdraft fees, intends to invest new capital in scaling operations as well as launching new products and services, the company said.
That, along with SquareThe ‘Cash App’ and several other players became viral hits because of their ease of use – especially during the pandemic, when many avoided going to branch banks and turned to online banking services. As a result, the San Francisco-based company more than tripled its transaction volume and revenue last year.
Last week Square said he was spending $ 29 billion in stock on Afterpay in one of the largest technology contracts ever.
The primary investors in Chime’s latest round are SoftBank, Sequoia Capital, General Atlantic, Tiger Global and Dragoneer Investment Group. The company is also positioning the company for a potential IPO in the first half of next year, according to the Wall Street Journal, citing sources familiar with the matter.
Chime made a profit on the basis of EBITDA during the pandemic, co-founder and CEO Chris Britt told CNBC last September. The company adds hundreds of thousands of bills a month, he said at the time, but declined to say how many total users there are.
Surprisingly, Chime – whose name should evoke a calming sound – was estimated at just $ 1.5 billion in early 2019, just two years ago. Founded in 2012, the company’s story shows how fast start-ups can increase if product matching is convincing.
In the public market, Fintech earnings are staggering. Earlier this week, cryptocurrency exchange Coinbase reported a Increase revenue 12 times a year earlier to $ 2.23 billion. Not to be outdone, an internet lender Upstart Holdings he said revenue increased 11 times compared to last year at 194 million dollars.
In the private market, fintech companies are also attracting tremendous value. According to a research and analytical firm CB Insights, eight of the 20 most valuable private technology companies are engaged in financial services.
Earlier this year, payment technology provider Stripe collected its nine-figure round of funding, becoming the most valuable private fintech company in the world. Chimee’s latest rise raises his position to third place most valuable behind Swedish firm “buy now pay later” Klarn, valued at $ 45.6 billion after the June round of funding which was also run by SoftBank.
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