Neobank Chime successfully went public on Thursday, raising $864 million in its IPO with shares priced at $27 each, exceeding its initial range of $24 to $26. This gave it an initial market cap of approximately $9.8 billion. Shares opened at $42, boosting its valuation to $14.5 billion by midday, according to Yahoo Finance. Chime reported $1.3 billion in revenue in 2023 and $1.7 billion in 2024, with losses shrinking from $203 million in 2023 to $25 million in 2024. It became profitable in Q1 of 2025, earning $13 million in net income on $519 million in revenue. However, the company warns that profitability may not be sustained as it invests in growth. Chime’s journey was fraught with challenges, including being turned down by 100 venture capitalists in 2016. Lauren Kolodny of Aspect Ventures (now Acrew Capital) provided a crucial $9 million extension, saving the company. Chime’s mission is to offer a free online banking experience for the working class, generating revenue through interchange fees.
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