Christ CEO, Chris Brit, Center Right, Rang the opening bell during the company’s initial public offering at Nasdaq Market on June 12, 2025 in New York City.
Andres Kudki | Getty images
Churning Opened at $ 43 at the beginning of its Nasdaq on Thursday Sales share The online banking company was priced at $ 11.6 billion in every $ 27 in an IPO.
Late Wednesday night, Chime raised about $ 700 million in its offer, and existing investors sold shares worth an additional $ 165 million. Stock tick is trading under the symbol Chym.
Chime’s IPO, from the perspective of a valuation, represents a big step, from where venture investors like Sex Capital have given their value to the company Last money ravaging round In 2021, when private technical markets were fierce. At that time there was evaluation $ 25 billion,
Nevertheless, the latest indication of chime is the latest indication that Fintech IPO is opening after a multi-year freeze brought by the growing interest rates and evaluation reset in the market. From recent debut Itoro And Crypto Company circle The region has re -awakened optimism, both shares have strong initial pops.
Chime reported $ 518.7 million in revenue for the most recent quarter, increased by 32% from a year ago. Last year, the net income decreased slightly from $ 12.9 million in the same period, which fell below $ 15.9 million.
CEO Chris Britn said that Chime has created a loyal user base by earning $ 100,000 or less to Americans, a group that is often ignored by traditional banks.
“Two-thirds of our customer base use us as their direct deposit account and primary account relationship,” the U told David Faber of CNBC. “We help our members to avoid fees, get access to short-term liquidity, build their credits and create their savings-and it is a combination of services that actually resonance and most important to everyday consumer.”
The U stated that the company reached $ 25 million in adjusted profitability in the first quarter and has improved 40 points in its adjusted profit margin over the last two years.
The company’s top institutional shareholders are DST Global and Crosslink Capital. The IconIQ was one of the firms investing six years ago, when Chime raised money on the $ 1.5 billion evaluation.
Iconiq’s general partner said in an interview, “We first invested in chime in 2019 and continued to invest through the latter due to unwavering focus on serving our unique, everyday Americans – and they have created confidence with that core customer base.”
The average chimes complements more than 55 transactions per month using the customer chime card and interacts with the app four to five times a day. The active member growth rose 23% in the first quarter of a year ago, the Britn said, 8.6 million monthly active users and their primary banking relationships turned into a growing number of chimes to serve as their primary banking relationship.
Customer acquisition is not cheap. Chime revealed in his prospectus that he spent $ 1.4 billion on marketing between 2022 and 2024. The U stated that the retention rate is above 90% after users are directly deposited.
“Sometimes for people, it takes a change in life – changes in their career, a job change – for the time when they actually make switch and use us as primary bank account,” he said.
The company’s main revenue comes from interchange fees, charge traders pay when consumers swipe chime-zari debit or credit cards. The U stated that 72% of the chime’s revenue payments-operated, vs. traditional banks that rely a lot on the fees from overdraft and minimum balance.
“It’s very simple,” said Dan Dolav, an analyst from Mizuho. “I am really surprised how unrefined the business model is.”
Chime performance in public markets can set tone to come forward. Many other fintech players including Clarna, Mithun and Bulish have already filed public or confidential IPOs.
“If it goes well – and you will know that in the next two to three months – I think you will see a lot of receptivity from other companies of the pipeline”, David Golden, Partner of Revolution Ventures and former head of Tech Investment Banking in JP Morgan Chess said David Golden.
“If this is not right,” Golden said, “I think they will just continue to sit on their hands and wait for it.”
