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Chime hits $14.5bn valuation

Chime hits $14.5bn valuation

Chime has raised $485 million in a Series F funding round that values the American digital banking outfit at $14.5 billion, according to CNBC.

The round, which sees Chime's valuation more than double since its last funding round in December, comes as the firm benefits from American's migration to digital banking, which has accelerated during the Covid-19 pandemic.

CEO Chris Britt tells CNBC that Chime is adding hundreds of thousands of accounts a month, is now profitable on an EBITDA basis, and will be "IPO ready" within a year.

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 huge growth during the pandemic. Says Britt: "Nobody wants to go into bank branches, nobody wants to touch cash anymore, and people are increasingly comfortable living their lives through their phones."

The round was joined by Coatue, Iconiq, Tiger Global, Whale Rock Capital, General Atlantic, Access Technology Ventures, Dragoneer and DST Global.

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