The valuation for FinTech startup Chime Financial Inc. has swelled to about $25 billion after a $750 million fundraising round led by new investor Sequoia Capital Global Equities that could set the company up for its initial public offering by next year, per reports on Friday (August 13).
Other companies participating in the latest round of San Francisco-based Chime Financial fundraising include SoftBank Group Corp.’s Vision Fund 2 and existing investors General Atlantic, Tiger Global Management LLC and Dragoneer Investment Group LLC.
Chime Financial also announced three new independent board members on Friday (August 13): Cynthia Marshall, chief executive of the Dallas Mavericks; Jimmy Dunne, vice chairman of investment bank Piper Sandler; and Susan Decker, who is also a board member at Berkshire Hathaway Inc.
Chime CEO Chris Britt expects the new funds to go toward growth and the addition of new services, according to the WSJ report.
Chime’s app continues to rank first in PYMNTS’ monthly Provider Ranking of Personal Finance Apps for August.
Chime began talks with investment banks on a new stock market flotation back in March, which could value the startup at over $30 billion, a move that could occur before the end of the year.
In November of last year, Britt explained that there is “an increasing willingness to provide and manage your finances through a mobile app.” As such, Britt said that he thinks the expanded use of mobile banking is likely here to stay.
A few months before that, in September of last year, Britt, estimated that the company would be ready for an initial public offering (IPO). He said the company would “evaluate all of the potential paths to do so, including direct listings, traditional [IPOs] and SPACs,” as the decision approached.
Revolut also raised funds last month and landed $800 million in a funding round. The round was headed up by investors that encompassed Tiger Global and SoftBank. With that capital raise, the firm is valued at $33 billion.