Chime Financial

History

2020: Attraction of $485 million investments

At the end of September, 2020 the Chime Financial company became the most expensive startup in the field of financial technologies in the USA after receiving investments in the amount of $485 million. The cost of the company is estimated at $14.5 billion now.

It was the third round of financing which is carried out by a startup for half a year. Now Chime costs approximately in nine times more, than in March, 2020. The company manages popular bank service for consumers with mobile access. The startup suggests the clients to create normal and savings accounts, but without the most part of the fees charged by traditional banks. For example, Chime does not require a payment for money withdrawal in ATMs or a monthly subscription for use of the services.

The most expensive financial technical-startup in the world, Chime Financial, is estimated at $14.5 billion now

Instead the startup gains the most part of the income due to collection of the small commission for transactions which users make using the cards under the Chime brand. The startup induces clients to use more often the cards, applying function of an automatic moneybox. This function rounds a transaction amount to the next dollar, and then adds a difference to the savings account of the user of Chime.

Use of online banking allowed a startup to be selected among a great number of competitors. Chime claims that by May, 2020 clients created 3 million bank accounts, and this number grows by several hundred thousands every month. The chief executive officer Chris Britt told that since the beginning of 2020 revenue of the company increased more than three times. Additional financing in the amount of $485 million will help a startup to come to new segments of the market of financial services if he wishes that. According to the management, the company prepares for initial public offering within the next 12 months.^[1]

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