Chime’s IPO plans are now in the spotlight. The US neo bank, last valued privately at $25 billion, is setting a new price target that reflects the shifting fintech landscape. The San Francisco-based company announced on Monday that it will price its shares between $24 and $26, implying a market capitalization of up to $11.2 billion. At the midpoint, Chime expects to raise about $800 million from the listing. The IPO will be listed on the NASDAQ under the ticker symbol “CHME.”
For retail investors and venture capitalists, Chime’s IPO is a pivotal event for the fintech sector. Digital-first banks like Chime once symbolised the future of consumer banking, offering alternatives to traditional institutions, especially for younger and underserved customers. However, since the 2021 IPO boom, macroeconomic pressures have forced fintechs to shift focus from hyper-growth to profitability. The broader fintech sector has seen a 40% decline in average valuations since 2021, underscoring the significance of Chime’s recalibrated target.
Chime leans into growth momentum as IPO approaches
Founded in 2012 by Chris Britt (CEO, formerly of Visa and Green Dot) and Ryan King (CTO, ex-Plaxo and Comcast), Chime delivers fee-free banking via its mobile app, targeting those often overlooked by legacy banks. The company’s mission, building a more inclusive and transparent banking experience, has resonated with millions of Americans seeking to avoid costly overdraft fees and gain financial flexibility. Chime now serves over 18 million account holders nationwide.
Britt, a former Visa and Green Dot executive, serves as CEO. King, who previously held engineering roles at Plaxo and Comcast, serves as CTO. The pair met in San Francisco and built the company with the mission of creating a more inclusive and transparent banking experience. Their efforts have resonated with millions of Americans seeking alternatives to costly overdraft fees and limited financial flexibility.
The fintech unicorn has grown significantly over the past few years. It posted $1.3B in revenue in 2023, which jumped to $1.7B in 2024. Early momentum in 2025 has continued, with Chime already booking over $518M in revenue in Q1. More notably, it has dramatically reduced its losses, from $203M in 2023 to just $25M last year. This highlights a shift toward stronger unit economics ahead of its IPO.
Crucially, Chime has slashed its losses from $203 million in 2023 to just $25 million last year, signaling a turn toward stronger unit economics as it heads to the public markets. The company has also reported a positive adjusted EBITDA for the first time in Q1 2025, marking a milestone in its path to profitability.
Chime investor confidence holds firm despite valuation reset
The IPO will inject new capital into Chime and offer a partial exit for early investors like Cathay Innovation, which plans to sell shares during the offering. According to recent filings, other major shareholders, including DST Global, Access Industries, Crosslink Capital, and General Atlantic, are holding onto their stakes, as are Menlo Ventures and Iconiq Capital. Chime’s founders, Chris Britt and Ryan King, will retain significant voting control post-IPO through a dual-class share structure.
Chime’s new valuation target is less than half its last private valuation, but analysts say this aligns with broader market recalibrations. If demand for Chime shares is strong, the IPO could price above the initial range, potentially lifting the valuation once public trading begins. The company’s lock-up period for insiders is expected to last 180 days, restricting additional share sales.
A fintech outlier in a cautious public market
Despite the valuation reset, Chime’s IPO is among the largest of 2025 so far, second only to CoreWeave, which raised $1.5 billion at a $23 billion valuation—though CoreWeave’s debut also fell short of initial hopes, reflecting cautious investor sentiment.
For Chime, the IPO is about more than capital. It marks a defining moment for fintechs as they balance growth ambitions with fiscal discipline in a changed market environment. The listing is expected the week of June 9. Chime’s IPO is being led by Goldman Sachs, Morgan Stanley, and JPMorgan as joint bookrunners.
