Based in San Francisco, Chime Financial Inc. is a fintech startup turned Unicorn that offers financial services using a modern and mobile-centred approach for e-banking. The startup is currently standing at the valuation of US$ 25 billion (which is $10 billion higher than its last reported valuation of $15 billion in late 2020) after securing a US$ 750 million fundraise in its latest funding round on August 13 2021. Sequoia Capital Global Equities led the venture. Other significant investors in the Series G round included General Atlantic, Tiger Global, SoftBank Group Corp’s Vision Fund 2, and Dragoneer Investment Group.
The 2013-founded startup is also aiming to invest the new capital in scaling operations and launching new products and services.
Chime’s Feature Strategy
The company’s valuation has seen a brisk surge in the last few years as it has introduced features that make the whole banking experience more accessible for users and made it come down to the most used device today, Smartphones.
These features came into play amidst the pandemic making consumers able to tap their stimulus payments and faster unemployment benefits. These strategies have helped the company triple its transaction volume numbers with a considerable contribution in revenue last year.
- Chime offers a ‘spot me’ feature, enabling customers to make debit card purchases that overdraw(up to $200) their accounts without deducting any overdraft fees. In order to avail of this, customers with monthly direct deposits of $500 or more are eligible to register.
- They offer a ‘2-day early access’ to their direct-deposited paychecks, government stimulus and tax refund checks.
- In order to get a card issued, a customer must have a Chime Spending Account and have set up their direct deposit with Chime. Therefore, Chime’s primary banking customers either have the card or are on its waitlist.
Chime’s upcoming IPO: With the financial standing of US$ 25 billion, the company is now set to announce its initial public offering in early 2022.
Established in 2013 and co-founded by Chris Britt and Ryan King, Chime is a fintech company that helps its members avoid bank fees, save money automatically, and lead healthier financial lives. It offers a modern, mobile, and connected approach to banking that gives members complete control of their finances. Chime members receive a Chime debit card, a Spending Account, a Savings Account, and a powerful mobile app that keeps members in control. The Chime mobile app is available for iPhone and Android devices and has been featured as one of the best Money Management apps in the App Store. For more information, visit https://www.chime.com/.
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