Chime Officially Files for IPO
Digital banking giant Chime has formally filed its S-1 paperwork, initiating the process for its initial public offering (IPO). This follows confidential paperwork filed in December.
While the S-1 filing reveals key information about Chime's financials and risk factors, details like share price and quantity remain undisclosed. IPO specialist Renaissance Capital estimates Chime could target raising $1 billion.
Chime's Financials and Growth
Chime's financials indicate strong growth. The company reported $1.67 billion in revenue with $25 million in losses for 2024, a significant improvement from $1.3 billion in revenue and $203 million in losses in 2023. First-quarter 2025 revenue reached $519 million, suggesting a potential $2 billion revenue run rate for the year and a path towards profitability.
Chime offers checking accounts, savings accounts, debit cards, and credit cards, boasting 8.6 million active users.
$33 Million Dallas Mavericks Sponsorship
The S-1 filing also revealed a significant sponsorship deal with the Dallas Mavericks. Chime paid approximately $33 million over three years (2022-2024) for jersey logo placement and other marketing benefits. This agreement coincided with former Mavericks CEO Cynthia Marshall's tenure on Chime's board.
IPO Details and Backing
The number of shares offered and the involvement of insiders, including major backers like DST Global, Crosslink Capital, Access Industries, General Atlantic, Menlo Ventures, the Sino French Innovation Fund, and Iconiq, are yet to be disclosed.
Chime's selection of prominent investment banks, including Morgan Stanley, Goldman Sachs, and JP Morgan, underscores the anticipated scale of the IPO.
Having raised $2.65 billion as a private company, including a 2021 round valuing it at $25 billion, Chime's IPO is poised to generate significant returns for its investors.
