(Bloomberg) — Chime Financial Inc., a financial technology company focused on free banking services, has filed a confidential filing with the U.S. government for its initial public offering, according to people familiar with the matter.
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The company aims to go public in 2025, said the people, who asked not to be identified because the information is private. The timing of the IPO has not yet been finalized and plans could still change, she added.
Chime offers a digital mobile banking offering, although it does not operate as a bank itself and is part of a wave of such companies that have emerged around the world in recent years. By using an asset-light approach that reduces branch and staff costs, these companies, such as Monzo Bank Ltd. in Great Britain, offering more attractive services than traditional banks.
A Chime spokesperson declined to comment. According to data from PitchBook, the company has raised $2.65 billion to date. Investors include Menlo Ventures, Forerunner Ventures, Sequoia Capital, Coatue Management and Acrew Capital.
San Francisco-based Chime offers users banking-like services through an app, including checking and high-yield savings accounts. Earlier this year, Chime introduced the ability for customers to access as much as $500 of their paycheck before they arrive. The company has also struck a deal with the NBA’s Dallas Mavericks that will see its logo placed on the team’s jerseys.
Chime scored a $25 billion valuation in 2021 at the height of a tech boom that then fizzled out as interest rates and inflation rose. Bloomberg previously reported that Chime had hired Morgan Stanley for the position of lead underwriter on its IPO, targeting 2025. The IPO market is showing signs of revival and optimism heading into next year, with companies buoyed in part by the positive stock market response on the election of Donald Trump. as chairman.
–With help from Vlad Savov.
(Updates with additional details from the third paragraph)
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