(Reuters) – Chime has raised $485 million in a brand new funding spherical that values the digital-only banking agency at $14.5 billion, an organization spokeswoman stated on Friday.
At its newest valuation, Chime has now overtaken Robinhood as probably the most priceless U.S. fintech startup.
Buyers together with Coatue, ICONIQ, Tiger International, Whale Rock Capital, Common Atlantic, Entry Expertise Ventures, Dragoneer and DST International participated within the funding spherical.
Chime is amongst numerous digital-only banking suppliers which have sprung up within the U.S. and globally in recent times, as an growing variety of smartphone customers swap to on-line transactions and digital banking companies.
Chief Govt Officer Chris Britt stated the COVID-19 pandemic has accelerated the adoption of extra digital companies.
“Nobody wants to touch cash anymore… we’ve really benefited during the pandemic because our customers use us for their non-discretionary everyday spending – to buy groceries, food and for online shopping,” he informed Reuters.
Chime’s transaction quantity and income grew greater than 3 times in 2020, the corporate stated in an announcement.
Britt stated Chime is taking steps to be ready for an preliminary public providing, and will anticipate to go public subsequent 12 months. Nonetheless, he cautioned that no timeline has been determined but.
“We do have efforts and initiatives today to get ourselves into a position of being what I would refer to as IPO-ready,” he stated.
San Francisco, California-based Chime’s valuation has jumped practically 900% since March 2019, when it had raised right here about $200 million at a valuation of $1.5 billion.
Robinhood had raised $200 million in August from funding agency D1 Capital Companions at a valuation of $11.2 billion.
CNBC first reported the information of the funding spherical earlier on Friday.
Reporting by C Nivedita in Bengaluru; Modifying by Krishna Chandra Eluri