Chime Upcoming IPO: A new chapter for the one-of-a-kind fintech

Chime Financial, a digital banking platform, is poised to make a significant entrance into the public market with its anticipated initial public offering (IPO). Having confidentially filed for an IPO in late 2024, the company has enlisted Morgan Stanley to lead the offering, aiming to raise up to $1 billion.¹

Chime: Company background

Chime is a fintech company that started in 2012 and is perhaps best known for its online checking account offering that has no monthly service fees, minimums, or overdraft fees. Technically, Chime is not a bank — it's a tech company that works with partner banks (currently Stride Bank, and The Bancorp Bank, both FDIC-insured) to provide deposit accounts to customers.²

Chime was co-founded by Chris Britt and Ryan King. Britt's background includes serving as chief product officer at Green Dot (which offers products like prepaid debit cards) and senior product leader at Visa.³ King's background is in tech, having worked as VP engineering and COO at Plaxo, a startup acquired by Comcast.⁴

Chime's financial performance and growth trajectory

Millions of Americans pay to keep their money in a bank account and then get hit with excess fees such as overdrafts. In fact, 27% of Americans with a checking account are paying some form of monthly fees, whether that's a recurring maintenance fee or ones like ATM or overdraft fees. Of those fee-paying account holders, the annual cost averages $288, according to a Bankrate survey.⁵

Chime is a leader of a new wave of fintech providers that are trying to disrupt this issue with traditional banking, with Chime's business model based primarily on interchange fees — i.e., the swipe fees merchants pay when consumers use credit or debit cards — rather than making money on account-related fees.⁶

That's not to say Chime is completely fee-free — there are out-of-network ATM fees, for example.⁷ But for the most part, Chime is trying to appeal to low- and middle-income Americans who want a banking experience and related financial products that help them keep more of their money and improve their financial position.

This approach has been working in the sense that Chime has demonstrated robust financial growth in recent years. In 2024, the company reported revenues of $1.7 billion, marking a 30% increase from the previous year.⁸ Notably, Chime significantly reduced its net loss to under $50 million in 2024, down from approximately $200 million in 2023. The company's user base also expanded, reaching eight million active customers, up from seven million in the first half of 2024.⁹

Chime has over 38 million customers, which is more than competitors like SoFi, Dave, MoneyLion and Current combined, according to Cornerstone Advisors.¹⁰ And Chime has an 8.1% market share of Americans' primary checking account — a higher share than large banks like JPMorgan Chase and just behind Wells Fargo.¹¹

Recently, Chime has started to expand into lending, and the company is reportedly eyeing other products like retirement accounts in the future, according to Forbes.¹²

Chime's product innovation and market position

Chime's success can be attributed to its commitment to providing accessible and user-friendly financial services. The company's offerings include fee-free checking accounts, early access to paychecks and a secured credit card designed to help users build credit.^13 14 In 2024, Chime introduced "MyPay" an earned wage access service allowing users to access up to $500 of their pay before payday.^15 16 In addition, the acquisition of Salt Labs has enabled Chime to offer rewards programs aimed at enhancing user engagement.¹⁷

Chime's valuation and share price

Chime's valuation has seen adjustments in response to market conditions. While the company was valued at $25 billion during a 2021 funding round, current estimates place its valuation at approximately $11.37 billion as of June 2025, according to Forge's Forge Price data.This recalibration aligns with broader trends in the fintech sector, where companies are experiencing more conservative valuations amid evolving market dynamics.¹⁸

Chime's Forge Price as of June 02, 2025 is $31.50 (see chart below). Chime has actively traded in the private market this year. Forge Price™ is a derived data point that reflects the up-to-date price performance of venture-backed, late-stage companies, and is calculated based on a proprietary model incorporating pricing inputs from primary funding round information, secondary market transactions, and indications of interest (IOIs) on Forge.

Potential challenges and considerations

As Chime prepares for its IPO, the company does face several potential challenges:

• Regulatory scrutiny: Chime has encountered regulatory issues, including a $4.5 million settlement with the Consumer Financial Protection Bureau in 2024 over delayed consumer refunds.¹⁹
• Profitability pressures: Maintaining profitability post-IPO will be crucial, especially as Chime continues to invest in product development and customer acquisition.²⁰
• Market competition: The digital banking space is increasingly competitive, with traditional banks and other fintech companies expanding their digital offerings.²¹

Looking ahead

Chime's potential IPO represents a significant milestone in its journey to redefine banking for the Digital Age. Capital that could be raised is expected to fuel further innovation, expand product offerings and enhance customer experience. As the fintech landscape continues to evolve, Chime's performance post-IPO will be closely watched by investors and industry observers alike.²²

Take a look at Forge’s upcoming IPO calendar to stay in the loop about possible other pending public offerings.

If you’re interested in investing in private companies like Chime before they go public, read more about pre-IPO investing or register on Forge Markets today to get started.