Chime invites Goldman Sachs to lead its $40 billion IPO

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Chime invites Goldman Sachs to handle its $40 billion IPO | iTMunch

Chime Financial, Inc., a US-based fintech company, has invited Goldman Sachs to help it become ready for an Initial Public Offering (IPO) that might value the online banking titan up to $40 billion. Goldman Sachs was chosen by Chime after interviewing multiple high-potential investment banks in the last few weeks.

Chime, the provider of a fee-free online mobile banking service, will be valued likey at a considerable premium to its current valuation of $25 billion since its funding round in August 2021 that was led by Sequoia Capital.

The company was valued at $1.5 billion just 3 years ago. Chime’s blockbuster IPO listing will underscore how the company has taken market share from various traditional banks, thanks to the checking accounts that provide payday advances with no overdraft fees.

Chime and Goldman Sach’s IPO-related partnership

After being in talks with various top investment banks of the world, Chime decided to give the leading role in its IPO to Goldman Sachs, according to Reuters. Other investment banks are to be added to the underwriter roaster in the run-up to Chime’s Initial Public Offering. The anonymous sources pointed out that the size and timing of the IPO are subject o market conditions. As of now, fintech Chime and investment bank Goldman Sachs haven’t made official comments on the same.

If the financial technology giant goes ahead with its plans of getting listed, it might have to take on some brave choppy market conditions that have caused some listings to be pulled in the past few weeks and been pretty hard on some of the listings that took place in 2021.

SEE ALSO: Mastercard launches ‘Track Instant Pay’ for instant B2B payments

About Chime – an American financial technology firm

Founded by Chris Britt and Ryan King, Chime Financial, Inc. is a fintech that’s based in San Francisco, California. . The company was founded in 2013 and offers its exquisite services via partnerships and collaborations with brick-and-mortar banks with some of the branded checking accounts with easy-to-use features, like ODs. Chime earns money by charging fees from payment processors, like Visa, each time a customer uses a Chime credit/debit card.

Silicon Valley-based fintech offers its banking services via stride Bank and The Bancorp Bank. According to estimates by eMarketer, as of now, Chime has over 13 million active users. Chime is currently enjoying strong growth during the COVID-19 pandemic as customers embrace digital banking services, while Chime offers popular products, including fee-free overdrafts and faster access to stimulus checks. The US-based fintech competes with other online banking services such as Current, Revolut, and Varo.

Some of the benefits, as listed by Chime on their website, include no monthly fees, credit building, getting paid earlier, fee-free overdraft, over 60,000 fee-free ATMs, high security and control, the ability to send and receive money, and high-yield savings account.

SEE ALSO: Fintech giant Plaid acquires Cognito for $250 million

For more latest IT news and updates, keep reading iTMunch

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Riddhi Jain is a technology content writer. She is based in India and has been working as a content writer since 2018. Riddhi has been writing content in the tech domain since May 2020 and can’t get enough of it. Riddhi has pursued most of her education from her hometown, Indore. She has graduated as a Bachelor of Business Administration and discovered her love for writing blogs while pursuing an internship during college. Once she discovered her love for writing, she went on to improve this skill set (and hasn’t stopped since).
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