Chime's Bold Leap: Digital Banking Giant Files for IPO Amid Fintech Surge
Yahoo Finance5 hours ago
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Chime's Bold Leap: Digital Banking Giant Files for IPO Amid Fintech Surge

Fintech
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Summary:

  • Chime, a leading digital banking fintech firm, has filed for an IPO, revealing a revenue increase to $1.67 billion in 2024

  • The move signals a growing trend of fintech companies challenging traditional banks like JPMorgan Chase and Bank of America

  • Chime's success could pave the way for other tech sector IPOs, especially in a recovering market

  • Founded in 2012, Chime has raised $2.65 billion from investors, including SoftBank and Tiger Global

  • The company will trade on the Nasdaq under the symbol "CHYM", with major banks underwriting the offering

By Jaiveer Shekhawat and Manya Saini

(Reuters) - Digital banking fintech firm Chime disclosed a significant rise in 2024 revenue in its IPO filing on Tuesday, marking a long-awaited move towards a U.S. stock market launch.

Financial technology companies are increasingly making their mark in the U.S. lending space, challenging traditional giants like JPMorgan Chase, Bank of America, and Citigroup.

Chime's revenue saw an impressive jump to $1.67 billion in the fiscal year ended 2024, up from $1.28 billion the previous year.

The IPO window has reopened as markets show strong recovery, fueled by progress in trade talks, offering companies a golden opportunity to list after months of tariff-induced turbulence.

A successful debut by Chime could set the stage for other tech sector IPO candidates, encouraging them to proceed with their listings.

"We led the 2017 Series B when few Silicon Valley investors believed, driven by our conviction that Chime could become a category-defining company," said Simon Wu from Cathay Innovation.

"Today's IPO filing marks an exciting new chapter — not just for Chime, but for the future of inclusive, technology-driven consumer finance."

Founded in 2012 by Chris Britt and Ryan King, San Francisco-based Chime offers financial services through a mobile app, revolutionizing the way consumers interact with banking.

Since its inception, Chime has raised $2.65 billion from private investors, with its latest funding round attracting big names like SoftBank Investment Advisers, General Atlantic, and Tiger Global Management.

In August 2021, Chime's valuation hit $25 billion during a fundraise. However, details regarding the number of shares to be sold or the estimated price band remain undisclosed.

Chime is set to trade on the Nasdaq Stock Exchange under the ticker symbol "CHYM", with Morgan Stanley, Goldman Sachs, and J.P.Morgan leading the underwriting syndicate.

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