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Dive Brief:
Fintech Chime filed S-1 paperwork Tuesday with the Securities and Exchange Commission for an initial public offering.
San Francisco-based Chime intends to list its Class A common stock on the Nasdaq under the ticker symbol “CHYM.” The company said the number of shares to be offered and the price range for the proposed offering have not yet been determined.
Chime’s revenue reached $1.67 billion in 2024 – up from $1.28 billion in 2023, while its loss decreased from $203 million in 2023 to $25 million in 2024.
Dive Insight:
Chime’s IPO follows that of social investment fintech eToro, founded in Israel, which sought to raise $500 million through its public offering last week. eToro’s stock opened at $69.69, which is 34% above its IPO in its Nasdaq debut on Wednesday and closed at roughly $67 per share — bringing its total market capitalization to more than $5.4 billion, CNBC reported.
Tariff-related volatility, however, pushed back IPO plans for other fintechs like buy now, pay later firm Klarna and ticketing platform StubHub.
Chime, founded in 2012 by Chris Britt and Ryan King, has dubbed itself a digital banking alternative offering fee-free banking. Chime was valued at $25 billion after raising $750 million in a funding round in 2021.
In December, Bloomberg reported that the fintech submitted a confidential filing with the U.S. government for its IPO, aiming to go public this year.
As of March 2025, Chime had 8.6 million active members, marking a 23% year-over-year increase, according to the S-1 filing. Nearly two-thirds of its members count Chime as their primary “financial relationship.”
“Looking ahead, with less than five percent adoption in our core target market, we see an enormous opportunity to grow for years to come,” Britt and King wrote in a letter accompanying the filing, adding that the fintech’s primary account relationships “uniquely” position it to expand into adjacent markets.
“Breakthrough in [artificial intelligence], combined with our extensive dataset and platform, give us an advantage that can continue to compound – enabling us to make leaps forward in efficiency, innovation, and member experience,” they said.
In its filing, Chime stressed it “is a technology company, not a bank” and is not a member of the Federal Deposit Insurance Corp. Banking services offered through the fintech are provided by The Bancorp Bank and Stride Bank, which offer FDIC-insured accounts.
Chime’s public offering is led by Morgan Stanley, Goldman Sachs and JP Morgan Chase.
Chime reported that its operating activities resulted in a net cash outflow of $25.8 million. The increase in working capital of $125.3 million was partially offset by positive net income of $12.9 million and non-cash adjustments of $86.6 million.
Going public is intended to increase Chime’s capitalization and financial flexibility, and enable access to public equity markets. The company wants to use the net proceeds from the offering for general corporate purposes, including working capital, operating expenses, and capital expenditures.
Chime might also use a portion of the proceeds to acquire or invest in businesses, products, services, or technologies, although it does not have any acquisitions or investments in the pipeline currently.
Additionally, Chime said it plans to use some proceeds to satisfy its anticipated tax withholding and remittance obligations related to the restricted stock unit settlement.
In its SEC filing, Chime argued that traditional banking systems cannot cater to the needs of Americans living paycheck-to-paycheck, highlighting that 85% of its new members who direct deposit through Chime left another direct deposit relationship, most commonly with large traditional banks.
Those incumbents rely on a net interest margin-based business model, with nearly 70% of their revenue coming from customer deposits and lending, Chime said. However, Chime referred to traditional banks, including Bank of America, Capital One, Citi, JPMorgan Chase, PNC and Wells Fargo, as its main rivals, with Nubank and Revolut as potential competitors if they expand in the U.S.
“Banking remains one of the largest and most analog industries to be disrupted,” the founders noted. “Like so many other categories, the winner will be a digital-first platform that relentlessly innovates and becomes indispensable in the lives of our customers.”
Chime generates much of its revenue through interchange fees, when its customers spend using a Chime-branded debit or credit card, rather than fees paid by customers. Chime members typically use these cards for their everyday, non-discretionary expenses, with nearly 70% of purchases made for food and groceries, gas, and utilities expenses. In the first quarter of 2025, Chime’s members interacted with its app at an average of 141 times per month and completed an average of 54 transactions each month.
For the first quarter, Chime’s average revenue per active user rose to $251 – up from $231 in the first quarter of 2024. From the first quarter of 2022 to the first quarter of 2025, average revenue per active member grew at an average annualized rate of 6%, reflecting an increase in member engagement, new products, and monetization, the company noted.
Chime has launched several new products and tools in recent years. In March, the fintech rolled out instant loans, offering customers access to up to $500 at a fixed rate, without having to go through a credit check.
Chime has also added financial wellness services that are available through employers and expanded its overdraft service. Other products include Chime+, a free, premium membership tier that offers additional features to enhance members’ mobile banking experiences.
Chime’s investors include DST Global, Crosslink Capital, AI Bells, General Atlantic, Menlo Ventures, Sino French (Innovation) Fund and ICONIQ.
