Digital banking startup Chime valued at $1.5 billion in new $200 million round
May 4, 2020
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The investment was led by venture capital firm DST Global with participation from new investors General Atlantic, Coatue, ICONIQ Capital and Dragoneer Investment Group, the company said. Existing investors Forerunner Ventures, Cathay Innovation, Menlo Ventures and others also participated, Chime said.
San Francisco-based Chime will use the cash injection to launch new products in credit building and short-term lending, Chief Executive and Founder Chris Britt said in an interview. Chime curently offers checking and savings accounts and a debit card.
“Everybody knows their credit score because of all the services out there that are free, but what people struggle with is how to improve their credit score,” Britt said.
Chime is among a number of digital-only banking providers that have sprung up in the United States and globally in recent years with the aim of taking advantage of new technologies to offer easier-to-use and cheaper services built for the smartphone era.
Online banks in the United States include Varo Money Inc and Ally Bank, while established financial institutions such as JPMorgan Chase & Co have also recently launched digital-only accounts.