Chime raises $500 million
Chime, the digital banking startup which back in March raised $200 million at a $1.5 billion valuation, has now raised $500 million in a Series E round at a $5.8 billion valuation. The round was led by DST Global with participation from General Atlantic, Iconiq, Coatue, Dragoneer, and Menlo Ventures.
Founded in 2013, Chime provides banking services by The Bancorp Bank or Stride Bank, serving 5 million customers as of September 2019. According to CNBC, Chime will generate an estimated $300 million in revenue this year, mostly from swipe fees on debit cards.
Chime will use the funds to develop new products and double its employee count by the end of 2020, while considering acquisitions of other fintech firms. The startup also plans on launching a marketplace as it looks to hire a person who will help build partnerships with companies that offer products and services that would provide “both significant member benefits as well as a revenue opportunity” for Chime.
Bottom Line: Insurance under the influence.