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Investment Opportunities

Chime IPO: Will This Fintech Unicorn Go Public in 2021?

The Chime IPO is coming soon. The company is one of the most anticipated IPOs of 2021, and it’s set to go public in late 2021.

So, what’s the latest news on the anticipated Chime IPO? Here’s what we know…

Chime IPO: The Business

Chime IPO

Chime is a fintech startup that delivers online banking services. CEO Chris Britt and CTO Ryan King created Chime in 2013. A year later, Chime made its public debut on the Dr. Phil Show.

The company is aiming to redesign banking to be easier, cheaper and more convenient. The Chime website states…

Chime is a financial technology company founded on the premise that basic banking services should be helpful, easy and free. We want to profit with our members, not from them. That’s why our model doesn’t rely on overdraft, monthly service, minimum balance, or other consumer fees.

Chime isn’t your traditional neighborhood bank branch. It’s actually not a bank at all… To be clear, Chime is a fintech company with bank-backed partners. Its services are provided by The Bancorp Bank and Stride Bank, which are both FDIC members.

In the words of Chime’s CEO… the platform is “more like a consumer software company than a bank,” Britt told CNBC. “It’s more a transaction-based, processing-based business model that is highly predictable, highly recurring and highly profitable.”

The company has over 12 million users as of February 2021. According to Apptopia, Chime was the top digital banking app in the U.S. in the first half of 2021 with 6.4 million installs.

The Market for Online Banking Services

The online banking market is booming. And the push to transition from traditional banking services to online shows no signs of slowing down. Allied Market Research data revealed that the global online banking market hit $11.43 billion in 2019 and expects to hit $31.81 billion by 2027.

It’s no secret that modern-day consumers prefer convenience. Internet banking is growing in demand because it offers services without the need to go into a physical store. In a recent announcement, Stripe’s CEO said…

Nobody wants to go into bank branches, nobody wants to touch cash anymore, and people are increasingly comfortable living their lives through their phones … We have a website, but people don’t really use it. We’re a mobile app, and that’s how we deliver our services.

The success of Chime is no secret and reflects in the company’s finances. Let’s take a look…

Chime IPO: The Finances

Chime has raised $1.3 billion in Venture Capital funding. According to a report by CNBC, Chime raised $485 million in a Series F funding round. After funding, the company was valued at around $14.5 billion in September 2020. This valuation ranks Chime among the most valuable consumer fintechs in the U.S.

In March 2019, Chime had a $1.5 billion valuation. Based on Chime’s $14.5 billion valuation, the company’s value surged almost 900% in a year and a half. Chris Britt told CNBC that the company experienced a tripled transaction volume and revenue in 2020.

Until a Chime IPO is filed with the SEC, the company is privately held — and so are its finances. Not much financial information has been disclosed by Chime. But if you stick around, we’ll give you the latest updates on the company’s finances when the filing becomes public.

Chime IPO Details

Chime’s CEO announced that Chime will become “IPO-ready” within the next 12 months last September — although it isn’t locked into going public in that time frame. But we can expect to see an announcement for a Chime IPO in the works at any moment.

You may have to wait for a while if you’re looking for a specific date for Chime’s Wall Street debut. According to analysts, the company will likely go public in late 2021. The company has added 10 lawyers in the last year. And the legal hiring spree indicates that the company could be making plans to go public soon. Chime has made no official statements about the matter.

No information has been given about a Chime IPO date, price range or number of offer shares. Additionally, the company hasn’t announced a market or ticker symbol.

As always, make sure to research before you invest. IPOs can be volatile for the first few months. But if IPO investing interests you, check out our top recent IPOs and our IPO calendar. It’s updated daily to give you the latest news on upcoming and filed IPOs.

If you’re interested in other fintech investing opportunities, check out these top 5 fintech stocks to invest in this year.

If you’re looking for the latest investment opportunities, consider signing up for Liberty Through Wealth. This free e-letter is packed with market insights from leading experts. You’ll hear directly from Alexander Green, a bestselling author. He’s also worked as an investment advisor, research analyst and portfolio manager on Wall Street for 16 years.


About

Aimee Bohn graduated from the College of Business and Economics at Towson University. Her background in marketing research helps her uncover valuable trends. Researching IPOs and other trends has been her primary focus over the past year. When Aimee isn’t writing for Investment U, you can usually find her doing graphic design or traveling with friends.

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