With an increasing interest in alternative ways to use technology in finance, American company Chime aims to bring some innovation to the clunky and expensive US banking system. Chime is now the largest digital bank in the US, and plenty of investors eagerly await an opportunity to invest in this fast-growing fintech firm.
Throughout this article, we’re going to take a look at the most important details relating to the firm so that you can decide whether you’d like to invest in Chime. We’ll dive into all the key areas, such as the company statistics, revenue, users, and everything you need to know about the Chime IPO (initial public offering).
What does Chime do?
The company began in San Francisco in 2012. Chime is a fintech (financial technology) company that aims to provide banking services that are ‘helpful, easy and free’. To compete with the larger traditional US legacy banks, Chime uses an app to connect customers with regional banks (like The Bancorp Bank and Stride Bank) to provide financial products at lower prices.
You’ll sometimes see Chime referred to as a ‘neo-bank’ or ‘challenger bank’. Instead of making money through overdraft fees, monthly service fees, service fees, and minimum balance requirements – Chime simply makes money by taking a portion of the transaction fees charged to merchants when you use its debit card.
Currently, the fee-free mobile banking app offers a checking account, savings account, and a credit builder account.
Chime Key Company Facts
|Headquarters||San Francisco, US|
|Founders||Chris Britt and Ryan King|
|Number of employees||+1,600 (LinkedIn May 2023)|
|IPO Date||2023 (expected)|
|Number of investors||54|
|Total funding||$2.3 billion USD|
|Number of account holders||12,000,000|
|Valuation estimate||$25 billion USD|
Chime Company Statistics
Below is a breakdown of some key figures, including Chime’s revenue, estimated value, and number of account holders.
Revenue for Chime
Number of Chime users and account holders
Estimated Chime valuation
Only a few fintech companies are successfully operating as challengers to the current banking system. Here are some of the most notable competitors to Chime:
- Capital One
Who is Chime backed by?
According to Crunchbase, Chime has the backing of some big investors and venture capitalists (VCs), such as:
- Sequoia Capital
- General Atlantic
- Tiger Global Management
- Empede Capital
- DST Global
- Whale Rock Capital Management
When is the Chime IPO?
In 2020, founder Chris Britt said that Chime would be ‘IPO ready’ in a year. Riding on the wave of interest and investment in fintech companies, Chime saw its valuation grow to $25 billion in 2021. The firm had planned for its IPO to take place in the first half of 2022, aiming for a valuation in the region of $40 billion.
However, inflation, rising interest rates, and a broader change in investing sentiment has led to a sharp reduction in valuations for most fintech companies. It’s likely that Chime’s current valuation is not near the levels of 2021. So, like many other tech companies, Chime will probably hold off on its initial public offering (IPO) until market conditions improve.
The idea behind an IPO is to raise as much capital as possible to fuel further growth. If Chime carried out its initial public offering under poor conditions and investor sentiment, it wouldn’t be able to reach its full fundraising potential. However, the perfect moment may have already passed.
Who knows how long Chime will have to wait before technology investments begin attracting the same level of investing interest. It could be the case that Chime has to engage in further rounds of fundraising, or carry out its IPO in less than desirable conditions.
The latest news regarding the Chime IPO is that it ‘may have put its plans to go public on hold’.
How to invest and buy shares after the Chime IPO
1# Interactive Brokers
Interactive Brokers at a glance
Founded in 1978, the IBKR platform lets you access over 150 market destinations in 33 countries and trade any asset you may be looking for: Stocks, Bonds, ETFs, Forex, Funds, Commodities, Options, Futures, CFDs, Cryptos Futures, and even tiny small companies (a.k.a micro caps).
If you want to buy Chime stock after the IPO, here’s how you can buy shares using Interactive Brokers:
- Open a trading account with Interactive Brokers.
- Deposit funds into your account.
- Once it’s available, search for the Chime stock, there is no confirmed ticker symbol right now.
- Place the type of order you wish to use (e.g. market, limit, stop etc.).
- Once you’ve bought your desired number of Chime shares, continue to monitor performance.
If you’d like to learn more about the IBKR platform, check out our full-length Interactive Brokers review.
76% of retail CFD accounts lose money.
eToro at a glance
Founded in 2006 in Israel, eToro now has over 30 million customers worldwide. The platform is widely known for its social and copy trading features. It allows users to trade stocks, forex, commodities, cryptocurrencies, CFDs, and ETFs.
If you’re planning to buy Chime stock after the IPO, here’s how you can buy shares using eToro:
- Open an account with eToro.
- Head to the ‘Markets’ page, and select ‘Stocks’.
- Search for the Chime stock and select ‘Trade’.
- Next, hit ‘BUY’.
- Choose how much you want to invest in Chime or the number of shares you want to buy.
- Select your leverage (or ensure that leverage is set to X1).
- Decide on a take-profit parameter if you want to automate a future sale of your Chime stock.
- Finally, hit ‘Open Trade’.
If you’d like to learn more about eToro, check out our in-depth eToro review.
What is an IPO?
The acronym stands for ‘Initial Public Offering’, it’s a process used by large private companies to raise additional capital. This is done to further invest in the growth of the business or even pay off debt. An IPO creates public awareness, putting the company under the spotlight. Timing of an IPO is crucial for a company if it wants to maximise its capital-raising potential and increase its valuation due to demand from investors and the market.
Is Chime going to IPO?
Yes, but the main question is when. The company has been discussing an IPO since 2020 but is waiting for the right time to raise as much money as possible and attract more investment.
Did Chime postpone its IPO?
Yes. Like most fintech companies planning an IPO, Chime paused its initial public offering plans indefinitely due to external market conditions.
Who owns Chime?
As a private company, there are many institutional and individual investors who own pieces of Chime.
Is Chime publicly traded?
Not right now. Chime is still a private company. But after the Chime IPO, shares will be publicly trading on a stock exchange.
What is the stock ticker for Chime?
There is no official stock ticker for Chime at the moment.
Is Chime profitable?
According to some reports, yes. Chime was one of the first challenger banks/neo-banks to be EBITDA (earnings before interest, tax, depreciation, and amortisation) profitable. However, this was a couple of years ago, and because Chime isn’t a public company, the financial records can’t be looked at.
How much is Chime stock worth?
It’s difficult to put an exact value on Chime stock because it is still privately owned. The financial records aren’t fully available to the public or audited to meet certain accounting standards. However, the underwriters will put a figure on Chime stock before the IPO. Chime was supposedly hoping for a valuation in the region of $40 billion USD.
Can you buy shares of Chime?
Not at the moment. It is possible to invest privately in Chime, but this isn’t available to most retail investors unless you have significant funds and notable connections.