Chime Financial Inc., a prominent player in the world of fintech, has quietly submitted a confidential filing for its initial public offering (IPO), according to sources familiar with the matter.
The San Francisco-based company, which offers no-fee mobile banking services, plans to go public in 2025, these people revealed, speaking on condition of anonymity due to the private nature of the information. While the company is moving ahead with its IPO preparations, the precise timing of the offering has yet to be finalised, and it’s possible the plans could shift as circumstances evolve.
Founded as a digital-first banking alternative, Chime is part of a broader wave of fintech firms around the globe that have disrupted traditional banking models. Unlike conventional banks, Chime doesn’t operate physical branches, allowing it to keep costs down and pass the savings onto customers in the form of fee-free services. This asset-light approach, which cuts back on expenses such as branch staff and infrastructure, has proven popular with users and is part of a wider trend, with other firms like UK-based Monzo Bank Ltd. following similar paths.
Chime has yet to comment publicly on its confidential filing, with a spokesperson declining to provide further details. According to PitchBook data, the company has raised $2.65 billion to date, attracting investment from major venture capital firms such as Menlo Ventures, Sequoia Capital, Forerunner Ventures, Coatue Management, and Acrew Capital.
Through its mobile app, Chime offers customers a variety of banking services, including checking and high-yield savings accounts, as well as innovative features like early access to paychecks. In 2023, it introduced a service allowing users to access up to $500 of their pay before payday, an option that adds to its appeal for users seeking greater financial flexibility. Additionally, Chime has made a notable move into sports sponsorship, striking a deal with the NBA’s Dallas Mavericks to display its logo on the team’s jerseys.
At its peak in 2021, Chime was valued at an impressive $25 billion, a reflection of the booming tech sector at the time. However, the fintech landscape has since cooled, with rising interest rates and inflation dampening investor enthusiasm. Despite this, the company is moving forward with plans to enter the public market, and Bloomberg previously reported that Chime has tapped Morgan Stanley as its lead underwriter for the upcoming IPO.
While the IPO market experienced a slowdown in recent years, there are signs of recovery. Investor optimism has been buoyed by the stock market’s positive reaction to key political developments, including Donald Trump’s re-election as president. This has set the stage for a potential resurgence in IPO activity as 2025 approaches.
As Chime prepares for its next chapter as a publicly traded company, all eyes will be on how it navigates the shifting financial landscape and whether it can maintain its rapid growth amid a more challenging economic climate.