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Highlights
- Chime was established in 2013 and it was started to offer basic banking services for free.
- The fintech company offers checking accounts to its customers and does not charge an overdraft or monthly fees.
- Notably, the majority of Chime's revenues come from the interchange, which is a fee charged by merchants.
Ever since published reports claimed that the American financial services company Chime is looking to go public, potential investors have been looking up for its stock.
In October, it was reported that Chime was exploring its options to go public in the US equity markets and targeting a valuation between US$ 35 to US$ 45 billion.
The San Francisco-based company could go public in March next year, however, there's no official announcement from the company. As potential investors are searching for Chime's initial public offering (IPO) plans, let's find out if you can invest in this company:
Chime IPO: Can you buy this fintech company's stock?
At the moment, retail investors cannot invest in Chime. As the financial technology (fintech) company remains private, one cannot buy the shares of this company.
Also Read: Grove IPO or SPAC? Here's how to buy the sustainable company's stock
Until the company chooses to go public, retail investors won't be able to get hold of the pre-IPO shares. Before going public, most companies give a chance to retail investors to grab the pre-IPO stock offered by brokerage companies, generally on a randomized lottery basis.
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Fintech companies have gone public in the US markets this year, and if the IPO frenzy continues next year, Chime could consider filing documents with the US Securities and Exchange Commission and start its IPO process.
Chime was established in 2013 and it was started to offer basic banking services for free. The fintech company offers checking accounts to its customers and does not charge an overdraft or monthly fees from its customers.
Also Read: Solid Power to go public. How to buy the EV battery maker’s SLDP stock?
Chime reportedly does not have a banking license and to provide services to its customers, it partnered up with Stride Bank and Bancorp to offer FDIC-insured savings and checking accounts.
Notably, the majority of Chime's revenues come from an interchange, which is a fee charged from merchants when consumers buy something via a debit or a credit card.
Bottom line
According to a CB Insights report, in the third quarter of this year, US$ 31.3 billion were raised in funding for fintech. In August, Chime reportedly raised US$ 750 million in funding, and it was then valued at US$ 25 billion.
The fintech market is growing rapidly and Chime could benefit from it in future.
