This fintech is currently much more valuable than Robinhood

By | September 20, 2020

Proceed over, Robinhood – Chime is currently the most valuable U.S. based customer fintech.

Based on CNBC, Chime, a so called neobank that provides branchless banking services to clients, is currently worth $14.5 billion, besting the price tag of significant list trading platform Robinhood at around $11.2 billion, as of mid August, per PitchBook data. Business Insider also claimed about the possible new valuation earlier this week.

Chime locked in the new valuation of its through a sequence F funding round to the tune of $485 million from investors such as Coatue, ICONIQ, Tiger Global, Whale Rock Capital, General Atlantic, Access Technology Ventures, Dragoneer, and DST Global, per CNBC.

The fintech has seen enormous advancement over its seven-year life. Chime first reached 1 million drivers in 2018, and has since extra large numbers of purchasers, even thought the company hasn’t claimed the amount of customers it currently has in complete. Chime offers banking products through a mobile app including no-fee accounts, debit cards, paycheck developments, and no overdraft fees. With the course of the pandemic, savings balances reached all time highs, CEO Chris Britt told Fortune back in May.

Britt told CNBC the challenger savings account is going to be poised for an IPO in the following twelve months. And it is up in the atmosphere whether Chime will go the way of others before it and opt for a special objective acquisition organization, or maybe SPAC, to go public. “I almost certainly get messages or calls coming from 2 SPACS a week to see if we are considering getting into the marketplaces quickly,” Britt told CNBC. “The truth is we have a number of initiatives we desire to go through over the next twelve months to place us in a spot to be market-ready.”

The competitor bank’s rapid progression has not been with no troubles, however. As Fortune reported, again in October of 2019 Chime suffered a multi day outage which left a lot of clients struggling to access the money of theirs. Following the outage, Britt told Fortune in December the fintech had increased capacity and pressure testing of its infrastructure amid “heightened attention to performing them in a far more intense way offered the measurements as well as the speed of growth that we have.”