San Francisco-based Chime, one of the fastest growing bank account services in the U.S. with more than 1 million bank accounts, has raised $200 million in venture funding at a $1.5 billion valuation. This round of funding was led by DST Global. Coatue, General Atlantic, ICONIQ Capital, and Dragoneer Investment Group also participated in this round, according to CNBC. Existing investors that participated in this round include Menlo Ventures, Forerunner Ventures, and Cathay Innovation.
Funding from this round will go towards business growth and launching new lending and credit products. Chime will also double its size to more than 200 employees and the leadership team will be expanded upon.
The $1.5 billion valuation is a significant jump from May 2018 when Chime raised $70 million at a $500 million valuation. Menlo Ventures led that round.
“We’re excited to welcome some of the world’s leading growth investors to Chime,” said Chime founder and CEO Chris Britt. “Banking should be free, helpful and easy to use, but traditional banks are reluctant to embrace this reality. We aim to set a new standard in the industry by using technology to create services that are truly aligned with the best interests of consumers.”
Launched in 2013, Chime offers checking accounts, savings accounts, and debit cards without any fees. The way that Chime makes money is by receiving a portion of interchange fees from debit cards. This month, Chime surpassed 3 million FDIC bank accounts.
Some of Chime’s competitors include challenger banks like N26, Revolut, Simple, Moven, and Varo. And Chime also competes against financial technology companies like Wealthfront and PayPal.
