Fintech Company Chime Files for NASDAQ IPO

CHIME Financial Technology Company Tuesday filed documents to enter the NASDAQ. The company intends to submit a “Chym” checkbox.

“Chime is a technology company, not a bank,” the company said its avenueNoting that this is not a member of the Federal Corporation for US deposits. However, the company quotes Bank of America, Capital One, Citibank, Jpmorgan Chase, PNC Bank and Wells Fargo as competitors.

Most new Chime members who organize direct deposits earlier made direct deposits elsewhere, “most often with large active banks,” the company said.

According to the application, Chime reports the income from the junction associated with purchases that participants make with debit cards and credit cards. Banks raise a fee for the interchange, which, as a rule, as a percentage of the transaction value, as well as a specified amount for each transaction depending on the tariffs defined by card networks such as Visa. Then the banks pass the money to Chime.

In the March quarter, Chime brought $ 12.9 million to $ 518.7 million. The revenue increased by 32%and the profits narrowed from $ 15.9 million.

At the end of March, CHIME had 8.6 million active members, 23% a year. The average income by an active member, by $ 251, increased compared to $ 231. It has participants in all 50 states – it does not work on the US borders – and 55% of them are women. The average age of the participant is 36, according to Chime.

About two -thirds of members are looking for their “major financial relations,” Chime said. The term refers to those who made at least 15 purchases using their card or received a direct deposit in at least $ 200 over the past calendar month. Participants can use more than 45,000 ATMs without payments, which, according to Chime, is a greater network than leading US banks.

CHIME offers a number of other services in addition to its cards, including high -yield savings accounts, free tax submission and the ability to access $ 500 earned before earnings for 24 hours or instantly for $ 2.

Participants with a direct deposit can borrow up to $ 500 with a fixed interest rate of $ 5 for each borrowed $ 100. The company does not charge late payments and difficult interest. Spotme Chime allows participants entitled to overestimate up to $ 200, without a fee, and Spotme Boosts enables members who are entitled to temporarily push the limdraft limits up to $ 20 for free.

“Ever since we launched Spotme in 2019, overall income from overdraft revenue has decreased,” Chime said.

After a long drought, the initial public proposals looked ready for the rebound when President Donald Trump returned to the White House in January. Coreweave’s March debut When indicated by some impetus. But Trump’s tariff statement in April launched the market and managed companies, including Chime, as well as the Etoro trading platform, the Klarna and MarketPlace Stubhub Internet, to detain their plans.

Now planned to debut etoro, and digital company Health Company Health Health range of pricing For its IPO on Tuesday, the offer is quickly expected. Public CHIME Public is the last sign that new technology companies are preparing to check the market appetite at risk. Last month, FIGMA software software has stated that it was filed confidentially For IPO.

Chris Brit, Co -founder and CEO of Chime, said CNBC in 2020 that it is would be ready for the IPO for the next 12 months. But at the end of 2021, the markets were negative about the technology as inflation came up, which forced the central bankers to increase interest rates.

Chime was founded in 2012 and is in San Francisco, with 1465 employees. It took 22nd place on CNBC 2024 g List of private companies.

Investors include CrossLink Capital, DST Global, General Atlantic, Iconiq and Menlo Ventures.

– Ari Levy CNBC contributed to this report.

See: We don’t hope for the fee, instead we coin the deals, says Chime CEO Chime Briest