Chime to go public in 2025

As per the information reported by Bloomberg, Chime allegedly aims to introduce its IPO in 2025, however, at the time of the announcement, the fintech did not engage banks for it. Additionally, the company declined to comment on the matter. The report also mentions that Chime has been considered an IPO candidate for several years, with the company being valued at approximately USD 25 billion in 2021, yet saw a decrease due to interest rates and inflation increasing.

Since 2021, Chime has not raised any funds, with the company also not reporting on the number of customers it has for the past few years. However, consumer research conducted by Cornerstone Advisors provides more details on Chime’s customer base and demographics. In a survey of US consumers conducted in July 2023, Cornerstone underlined that Chime had approximately 38 million customers, which was also three times higher than the previous estimate from 2021.

As detailed by Forbes, Chime demonstrates two significant components in its journey towards an IPO, including sustained customer growth despite difficulties in the fintech landscape, while also maintaining a high percentage of primary customers who transact more frequently. Also, officials from Chime underlined in December 2023 that the fintech was as IPO-ready as a company can be, with it monitoring the conditions of the economy and the stock market. Previously, Chime started preparing for an IPO that was projected to come as early as spring 2023. Yet, the company postponed its plans in February 2022 due to challenges in the fintech ecosystem. Also, Chime announced that it was reducing its staff by 12%, aiming to work on its long-term success.

As a financial technology company, Chime’s banking services are offered by The Bancorp Bank, or Stride Bank, members of FDIC. The Chime Visa debit card and the Chime Credit Builder Visa credit card are issued by The Bancorp Bank, or Stride Bank under a licence from Visa US and may be leveraged everywhere Visa debit and credit cards are accepted. Prior to the current news, Chime announced that it augmented its fee-free overdraft feature SpotMe by making it available for members using the Credit Builder Visa credit card. The company’s SpotMe feature was made available as an overdraft line of credit when members leveraged the Chime Secured Credit Builder Visa credit card as well. This enabled members to utilise their Credit Builder card to access up to USD 200 in fee-free SpotMe coverage.

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