Digital banking fintech Chime – which in August raised $750M on a $25B valuation – is reportedly advancing in its journey to go public, according to a report.

Why should we care?
Chime’s IPO trajectory has been in the news for months as the neobank continues to scale. A recent estimate of its customer numbers was 20 million, putting it far ahead of rivals. It focuses on low- to middle-income customers, and zeroes in on customer pain points including easy access to funds, no overdraft fees up to $200, and a credit builder card. The company is in talks to go public at a $35B to $45B valuation, according to unnamed sources cited in the recent report. Chime reportedly will cross $900M to $1B in revenue this year. With a valuation of more than $35B, Chime would be more valuable than regional banks like Fifth Third, Regions Bank, and M&T Bank. The company turned a net profit in the second quarter of 2020, the report suggested, while noting that Chime isn’t “consistently profitable.” Unlike other neobanks that are seeking to become banks through acquisitions or banking charter applications, Chime has shown no indication that it wants to become a bank.