Led by Sequoia Capital Global Equities, the investment round saw participation from SoftBank Group Corp's Vision Fund 2, General Atlantic, Tiger Global and Dragoneer Investment Group
Funding will be utilised to scale Chime's operations. (Credit: Ahmad Ardity/Pixabay.)
US-based financial technology company Chime has secured $750m in a Series G funding round that valued the company at $25bn.
The funding round was led by Sequoia Capital Global Equities, a public-private crossover fund.
Other investors including SoftBank Group Corp’s Vision Fund 2, General Atlantic, Tiger Global and Dragoneer Investment Group, have also participated in the funding round.
The investment round saw the valuation of the company increase by $10bn compared to its last valuation of $15bn in a funding round in October 2020, CNBC reported, citing PitchBook data.
In March 2019, Chime secured $200m in a series D financing round that valued the company at $1.5bn. The series D financing round witnessed the participation of new investors such as Coatue, General Atlantic, ICONIQ Capital and Dragoneer Investment Group.
Chime intends to use the proceeds from the Series G funding round to scale its operations, along with launching new products and services.
Founded in 2012, as an alternative to traditional banking, Chime offers fee-free mobile banking services provided and owned by The Bancorp Bank.
It offers Visa debit cards to account-holders and provides them with an online banking system that is accessible through the company’s website or through its mobile apps.
Chime earns a significant part of its revenue from the collection of interchange.
In 2018, the company acquired Pinch, a start-up focused on helping millennials and young adults build their credit scores by reporting on-time rent payments to credit bureaus.
In March this year, Chime has entered into preliminary talks with investment banks to launch a stock market flotation, which could value the firm at more than $30bn, reported Reuters.