FinTech: Challenger Bank Chime Nabs $750M At $25B Valuation
The valuation in the Series G round was $10 billion higher than what Chime achieved in October 2020.
Digital neo bank Chime joined in the pyrotechnic valuations surrounding fintechs, garnering a massive $25 billion valuation in a $750 million Series G round that saw investment from SoftBank, Sequoia Capital Global Equities, General Atlantic, Tiger Global, and Dragoneer Investment Group. The current valuation is up from $1.5 billion in early 2019, and from $14.5 billion in October 2020, demonstrating the rocketing valuations in the fintech sector. (CNBC)
Chime is now the third most valuable privately-held fintech in the world, behind Stripe and Klarna, the latter being valued at $45.6 billion in June.
Meanwhile, Square (NYSE: SQ) thought it fit to pay $29 billion for BNPL player Afterpay (ASX: APT) as it sought to integrate the latter’s business with its own apps.
Fintechs, especially those offering digital banking, received a huge boost to their business from the pandemic, which pushed consumers away from physical, branch-based banking to online transactions.
In fact, Chime last year grew both volume and revenue 3X, and is adding hundreds of thousands of accounts a month, CEO Chris Britt told CNBC last September.
Chime also achieved profitability on an EBITDA basis during the pandemic.
In a measure of the galloping growth in the fintech sector, cryptocurrency exchange Coinbase (NASDAQ: COIN) last week reported a 12-fold increase in revenue from a year earlier to $2.23 billion.
Online lender Upstart Holdings (NASDAQ: UPST), meanwhile, said revenue climbed 11-fold from a year ago to $194 million.
IPO on the horizon
The Wall Street Journal said Chime’s Friday announcement of three new independent board members showed the company was laying the groundwork for a public listing.
The Journal also said the latest funding primed Chime for a potential IPO in the first half of 2022, according to a source.
Latest Alternative Investment News
Hundreds of thousands of bats from about 40 species routinely nest under US bridges, and many of them are endangered or threatened. Transportation departments must mandatorily check for them before…
Amazon (NASDAQ: AMZN) installed AI-powered cameras in its delivery fleet in February as an investment in safety technology across its operations. The company said at the time the system would…
Wise (LON: WISE), the UK payments fintech previously known as TransferWise, has taken its first steps into investing solutions. Its Assets product allows users to invest in stocks but also…
ETF Managers Group, which created the highly successful Breakwave Dry Bulk Shipping ETF (NYSE: BDRY), has launched a sister ETF – the ETFMG Breakwave Sea Decarbonization Tech ETF (BSEA). The…