Challenger bank Chime triples its valuation to $1.5 billion with $200 million in funding
- Challenger bank Chime now has a $1.5 billion valuation following a $200 million funding round.
- The new round was led by DST Global, which has backed Twitter, Facebook, and the UK digital bank Revolut, alongside new and exiting investors.
- This new deal means Chime's valuation has now tripled in a year.
Challenger bank Chime closed a new financing round that trippled the firm's valuation. It brought in DST Global, the investment firm led by Yuri Milner, as an investor.
Chime said Tuesday it raised $200 million in its Series D financing round led by DST Global, with participation from Coatue, General Atlantic, ICONIQ Capital, and Dragoneer Investment Group. Existing investors like Menlo Ventures, Forerunner Ventures, and Cathay Innovation also joined in the round.This brings the total funds raised by Chime to $300 million, the firm's cofounder and CEO Chris Britt told Business Insider.
Chime was valued at $500 million as of its last round back in May, and this new deal represents a tripling of the firm's worth in a year's time.
A group of fintechs recently have raised at much higher valuations, including German challenger bank N26 and the spare-change investment app Acorns.
"There is a trend where, increasingly, financial services will be delivered digitally through your phone, and I think that allows us to offer the no costs services and give people a greater sense of control over the money," Britt said.
With the new cash, the firm aims to hire new staff, expanding to 200 employees by the end of the year. It's also looking to explore new short-term lending and credit card offerings, including a credit product that focuses on helping its customers build credit scores.
Founded in 2013, the firm currently offers a fee-less digital checking account, enabling customers to deposit and make everyday purchases, and it also operates a peer-to-peer lending system without fees. Customers have opened 3 million bank FIDC-insured accounts on its platform to-date.