Chime, a US-based mobile bank backed by financial services firm Northwestern Mutual, has secured $200m in a series D round led by investment firm DST Global, CNBC reported yesterday.
Investment managers Coatue Management and Dragoneer Investment Group, growth equity firm General Atlantic and multi-family Iconiq Capital also contributed to the round, which closed at a $1.5bn valuation.
Founded in 2013, Chime provides financial services through a mobile app rather than traditional branches. Customers use a no-fee Visa debit card for purchases, and Chime generates revenue by charging merchants a transaction fee.
Chime has signed up more than 3 million users to date. The funding will allow it to launch loan and credit products, and to hire an additional 80 team members by the end of 2019, bringing its headcount to 200.
The company has raised more than $300m in total, securing $70m in a January 2018 series C round led by venture capital firm Menlo Ventures that included Northwestern Mutual’s corporate venturing subsidiary, Northwestern Mutual Future Ventures.
Forerunner Ventures, Aspect Ventures, Cathay Innovation, Crosslink Capital and Omidyar Network also took part in the series C round, which valued Chime at $500m.
Northwestern Mutual Future Ventures had already participated in Chime’s $18m series B round in 2017 alongside Cathay Innovation, which led the round, Crosslink Capital, Aspect Ventures, Forerunner Ventures, Homebrew and Omidyar Network.
The company’s shareholders also include PivotNorth Capital, Aspect Ventures and angel investor Zander Lurie.
