Chime Financial, the San Francisco-based digital banking startup, is back in the spotlight as it gears up for a potential U.S. IPO. The company is looking to raise up to $832 million by offering 32 million shares priced between $24 and $26 each, targeting a valuation of around $9.5 billion.
That figure is a notable drop from Chime’s $25 billion valuation during its 2021 funding round. The adjustment mirrors broader shifts in the fintech sector, where rising interest rates and market corrections have reset expectations across the board.
Founded in 2012, Chime has grown into one of the leading names in U.S. digital banking. It offers fee-free banking services such as checking and savings accounts, along with features like early paycheck access. With over 22 million users, Chime has carved out a strong niche, especially among younger consumers drawn to its simple, mobile-first experience. Its main revenue comes from interchange fees on debit card transactions.
While Chime hasn’t officially filed for an IPO yet, sources suggest that the offering could come as early as this year. The move follows a period of steady growth, with Chime expanding its offerings to include credit-building tools and early wage access, features that have resonated with younger consumers.
In 2024, Chime reported a 30% increase in revenue, reaching $1.67 billion. It also significantly cut its net loss, from $203 million to just $25 million, showing improved financial discipline as it prepares for life as a public company.
If the IPO proceeds, it could be one of the most closely watched fintech listings of the year. Chime’s debut will serve as a key test of investor sentiment toward digital banking, particularly after a stretch where tech valuations were recalibrated.
Whether it hits the public markets this year or slightly later, Chime’s next steps will be crucial. Its ability to grow sustainably while competing with both traditional banks and emerging fintech startups will determine not just its future, but perhaps signal where the fintech sector is headed next.
