Chime Raises $864 Million in Successful IPO

Chime Financial, a U.S. fintech company offering fee-free overdraft checking accounts and other banking services through FDIC-insured bank partners, successfully raised $864 million in its IPO at $27 per share, valuing the company at approximately $11.6 billion. The IPO demand exceeded available shares by over tenfold, reflecting strong investor interest despite Chime's previous funding valuation of $25 billion. Chime serves primarily consumers earning less than $100,000 annually, with 8.6 million active members generating an average of $251 in revenue per quarter, mainly through interchange fees on Chime-branded debit and credit cards. The company reported significant revenue growth of 88% last year to $1.673 billion but is not yet profitable, with losses narrowing from $470.3 million in 2022 to $25.3 million in 2024, and a recent quarter showing a $12.9 million profit. Chime's stock trades on the Nasdaq under the ticker CHYM, but it does not pay dividends. By providing accessible financial services such as SpotMe and MyPay, Chime targets a demographic underserved by traditional banks.