San Francisco-based mobile banking startup Chime announced this morning it has raised an additional $200 million in Series D financing led by DST Global, valuing its business at $1.5 billion. The oversubscribed round also included participation from new investors Coatue, General Atlantic, ICONIQ Capital and Dragoneer Investment Group, along with existing investors Menlo Ventures, Forerunner Ventures, Cathay Innovation and others.
To date, Chime has raised approximately $300 million, including last year’s $70 million Series C, which then saw the company valued at $500 million.
With the new funding, Chime has now raised the most funding and has the highest valuation among other U.S. challenger banks.
The company is now one of of several going after a younger, millennial audience who no longer sees the need for banks with physical branches, and who are sick of being nickel-and-dimed by bigger banks’ numerous fees. Like others in this space, Chime offers a “no fees” bank account, which won’t penalize users for things like dropping below a minimal balance or even overdrafts.
On top of this, is a modern-day banking app with features that make it look like it was actually built by a technology company – not a traditional bank. That’s because its team’s background is a mix of both tech and finance. Chime’s co-founder and CEO Chris Britt had previously worked at Flycast, was an early comScore employee, and worked at Visa and Green Dot; co-founder and CTO Ryan King spent time at Plaxo and Comcast before Chime.
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