Chime, a US-based digital bank operator backed by financial services firm Northwestern Mutual, has completed a $500m series E round led by investment firm DST Global, CNBC has reported.
Access Technology Ventures, an investment vehicle for diversified conglomerate Access Industries, also took part in the round according to a subsequent report by Forbes, which also identified General Atlantic, Iconiq Capital, Coatue Management, Menlo Ventures and Dragoneer Investment Group as participants.
Founded in 2013, Chime provides financial services through a mobile app rather than physical branches, offering a current account, debit card and overdraft that are all fee-free. The platform also enables users to receive their salary up to two days early.
The company’s user base has grown to approximately 6.5 million customers, and it will use the series E proceeds to develop additional products, double its headcount by the end of next year and open an office in Chicago. It may also make acquisitions in the fintech space.
Sources told CNBC that the round valued Chime at $5.8bn post-money, up from $1.5bn nine months ago, seemingly confirming rumours in October this year that the company was seeking a valuation of more than $5bn in its next round.
Chime has received $806m in equity financing to date. DST Global led a $200m series D round for the company in March 2019 at the $1.5bn valuation that included Coatue Management, Dragoneer Investment Group, General Atlantic and Iconiq Capital.
Northwestern Mutual’s venture capital subsidiary, Northwestern Mutual Future Ventures, participated in a $70m series C round for the company in January 2018 that was led by Menlo Ventures and backed by Aspect Ventures, Cathay Innovation, Forerunner Ventures, Crosslink Capital and Omidyar Network.
Cathay Innovation had already led Chime’s $18m series B round in 2017, investing with Northwestern Mutual Future Ventures, Aspect Ventures, Omidyar Network, Crosslink Capital, Forerunner Ventures and Homebrew.
– Image courtesy of Chime.
