Chime Financial Targets $9.47 Billion Valuation in Landmark IPO

Chime Financial, a San Francisco-based digital banking startup, announced on June 2, 2025, its plans to raise up to $832 million through an initial public offering (IPO) on the Nasdaq Stock Exchange, targeting a valuation of approximately $9.47 billion. The company intends to offer 32 million shares priced between $24 and $26 each, with 25.9 million shares issued by Chime and 6.1 million shares offered by existing shareholders, including venture capital firm Cathay Innovation.

This IPO is poised to be the largest U.S. listing since the implementation of President Donald Trump's tariffs, signaling a potential revival of the IPO market. The offering is being led by major underwriters Morgan Stanley, Goldman Sachs, and J.P. Morgan.

Company Background

Founded in 2012 by CEO Chris Britt and CTO Ryan King, Chime offers app-based banking services, including checking and high-yield savings accounts. The company has grown to become a significant player in the fintech sector, providing fee-free mobile banking services through partnerships with Stride Bank and The Bancorp Bank. Chime's offerings include early access to paychecks, fee-free overdraft protection, and an interest-free secured credit card.

Financial Performance

In 2024, Chime reported a 31% increase in revenue, rising to $1.67 billion from $1.28 billion in 2023. The company's net loss also decreased significantly, from $203 million in 2023 to $25 million in 2024.

Market Context

Chime's IPO comes amid a broader market recovery, driven by progress in trade negotiations, which has reopened the IPO window for tech companies. The offering marks the largest U.S. IPO since the implementation of President Donald Trump's tariffs, signifying a possible revival of the IPO market after recent setbacks.

Regulatory and Consumer Challenges

In 2021, Chime agreed to stop using the word "bank" in its marketing materials after a settlement with California and Illinois regulators. Additionally, in 2024, Chime was fined for poor handling of customer complaints and agreed to upgrade its customer service.

Implications for the Fintech Industry

Chime's IPO reflects the growing prominence of fintech companies in the financial services industry. The company's focus on providing fee-free banking services to middle-income Americans has challenged traditional banking models and prompted established banks to reevaluate their fee structures and digital offerings. The success of Chime's IPO could further validate the digital banking model and encourage more fintech companies to pursue public listings.

Chime's upcoming IPO is a significant event in the fintech industry, highlighting the evolving landscape of digital banking and its growing influence on traditional financial institutions.