New updates have been reported about Chime (PC:CHIMQ)
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Chime, the neobank, recently made a significant splash in the financial markets with its initial public offering (IPO), raising $864 million. The IPO priced shares at $27, surpassing the anticipated range of $24 to $26, and initially valued the company at approximately $9.8 billion. Despite this being lower than its last private valuation of $25 billion, the market responded favorably, with shares opening at $42 and closing at $37, resulting in a market cap of around $12 billion. This positive reception is attributed to Chime’s robust financial performance, reporting $1.3 billion in revenue for 2023 and $1.7 billion in 2024, alongside a significant reduction in losses from $203 million to $25 million over the same period. The company achieved profitability in the first quarter of 2025, generating $13 million in net income on $519 million in revenue, although it cautions that continued investment in growth may impact future profitability.
Chime’s journey to this milestone has been fraught with challenges, including regulatory hurdles and early financial struggles. Founded in 2012, the company initially faced skepticism from investors, nearly exhausting its funds before securing a crucial $9 million extension led by Lauren Kolodny of Aspect Ventures. This pivotal investment allowed Chime to continue its mission of providing a fee-free online banking experience for the working class, eventually attracting significant venture capital interest and raising approximately $2.65 billion privately. The IPO marks a new era for Chime, reflecting its resilience and the belief in its business model, as evidenced by the enthusiastic response from retail investors and the symbolic support from early backers like Kolodny.