Chime closes $500m funding round - CNBC

Chime closes $500m funding round - CNBC

Chime has raised $500 million in a Series E round that values the American digital bank at $5.8 billion, according to CNBC.

DST Global led the round in a deal that sees Chime's valuation nearly quadruple in less than a year.

The money will be used to develop new products and double, Chime's workforce, with a new office set to open in Chicago, says CNBC, citing sources.

Founded in 2013, Chime offers a fee-free, user-friendly banking app, which provides an accompanying debit card - on which the business earns interchange revenue - and auto-savings account.

The firm has seen rapid growth over the last year and now claims about 6.5 million accounts as it wins over young customers disillusioned with established banks.

However, not everything has been plain sailing; in October it spent several days unable to process debit card payments - the third downtime suffered in just a few months.

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