Fintech firm Chime has confidentially filed for an IPO (initial public offering), according to a report from Bloomberg.
Chime Financial Inc., a financial technology firm focused on no-fee banking services, has reportedly submitted a confidential filing with the US government for its IPO. This, according to sources familiar with the matter.
The Fintech firm intends to go public next year, according to the sources, who requested not to be named since this information is supposed to be private for now at least.
Chime’s IPO timing has not yet been finalized and the tentative plans might still change, the sources clarified.
Chime offers a digital-first mobile banking solution, however, it does not operate as a banking institution on its own.
Notably, the Fintech firm is among a number of other such businesses that have emerged globally in the past few years.
By using an “asset-light” approach that significantly reduces the cost of maintaining physical branches and staffing helps these firms to achieve their operational targets. For instance, Monzo Bank Ltd. in the United Kingdom uses this type of business model to provide arguably better services when compared to traditional banks.
Chime has so far secured $2.65 billion to date, according to PitchBook data.
Investors in the consumer Fintech firm reportedly include the following: Menlo Ventures, Forerunner Ventures, Sequoia Capital, Coatue Management and Acrew Capital.
Chime provides users bank-like services through a Fintech app, including checking and savings accounts.
In 2024, Chime introduced the option for clients to access as much as $500 of their paychecks earlier than they are issued.
The Fintech has also entered a deal with the NBA’s Dallas Mavericks that puts its logo on the NBA team’s official jerseys.
Chime landed a $25 billion valuation back in 2021 at the height of a tech boom that then subsided as interest rates and inflation surged.
Bloomberg has reported that Chime appointed Morgan Stanley for the lead underwriter role on its planned initial public offering, aiming for 2025.
The IPO market has exhibited signs of recovery and improved sentiment heading into 2025 with firms supported by the overall positive stock market sentiment following Donald Trump’s election as the US president.
Chime recently revealed that Sanford Morrow joins the Fintech firm as VP of Analytics
The former Upwork, Pinterest, and Google analytics leader brings extensive experience in data science, analytics, and team building “to support Chime’s growth.”
Sanford Morrow, VP of Analytics said:
“What draws me to Chime is not just its position as a leader in fintech, but its commitment to helping everyday people unlock financial progress. As we think about Chime’s growth, I look forward to driving company decisions rooted in data while staying true to our core mission of helping our members—and bringing our team closer together while we’re at it.”