Digital-first mobile bank Chime Financial has reportedly filed for an Initial Public Offering (IPO), according to sources cited by Bloomberg. The IPO will be led by Morgan Stanley, with Chime aiming for a public debut in 2025.
Neobank Leader
Based in San Francisco, Chime provides app-based financial services, including checking accounts, high-yield savings, and earned wage access. The neobank is the largest in the US, boasting over 23 million customers, with nearly half relying on Chime as their primary checking account provider.
Strong Revenue Model
Chime generates most of its revenue from interchange fees, amounting to $1.3 billion in 2023. The company has raised a total of $2.65 billion in funding, peaking at a valuation of $25 billion during the 2021 tech boom.
IPO Timing
As the neobanking industry continues to grow, Chime‘s potential IPO could signify its confidence in scaling operations and capturing market share in an increasingly competitive landscape.
If successful, the IPO may serve as a benchmark for other digital-first banks seeking to capitalize on the public markets.