The latest capital infusion for the California-based fintech company is likely to be a precursor to its upcoming stock market listing, besides helping it to scale operations
Chime Financial takes its valuation to $25bn after a $750m Series G round. (Credit: mohamed Hassan from Pixabay)
US-based financial technology company Chime Financial had secured $750m in a Series G funding round to take its valuation to $25bn.
The financing round was led by Sequoia Capital Global Equities.
Some of the main investors which took part in the Series G funding round are SoftBank Group Corp’s Vision Fund 2, Tiger Global, General Atlantic, and Dragoneer Investment Group.
The latest fundraise for the fintech company is expected to be a precursor to its stock market listing in the US in early 2022, reported Reuters.
Earlier this year, the publication reported that Chime Financial carried out preliminary talks with investment banks for a stock market floatation that could value it at over $30bn.
The fintech company, which is based in California, was founded by Chris Britt and Ryan King in 2012. The firm’s objective is to develop a new type of online bank account that enables members to manage their money easily.
It offers its customers free debit and credit cards. Chime Financial earns revenue by charging Visa and other payment processors whenever any of their users make use of the company’s credit or debit card on the network.
Using the company’s services, members can avail fee-free banking products, which include checking accounts without any minimum balance, early wage access, and an automated savings feature.
The company expects to use the proceeds from the new funding round for scaling its operations and for introducing new services and products.
To date, the financial technology company has raised nearly $2.3bn in capital. This includes $485m raised in a Series F round in September 2020, at a valuation of $14.5bn.
In another development, Chime Financial is now enabling its members to send and receive money from anyone irrespective of whether they have a Chime account or not.