visimoney
TLDR:
- Chime’s value has dropped from $25 billion to $5.9 billion, according to pricing data from Forge.
- Chime was one of the most actively traded securities on the private stock marketplace Hiive in 2023.
As the valuations of fintech firms have plummeted in recent years, Chime Financial has also seen a significant drop in its value. The privately held company was valued at $25 billion in 2021, but pricing data from Forge now suggests a value of just $5.9 billion, a 76% plunge from its previous valuation. Chime was one of the most actively traded securities on the private stock marketplace Hiive in 2023, with a total of 130 buy- and sell-side orders. Chime last traded at $18.50 a share, implying a valuation of $6.7 billion. Current buy-side indications of interest for Chime are around $16.50 a share for its common stock.
However, some venture executives believe that the new valuation of $6 billion is more reasonable than the previous one. Others are skeptical of the numbers being tossed around on secondary markets. One Chime investor claimed that their firm conducted a full analysis of Chime’s business last June that valued shares closer to $45, implying a total valuation of about $16 billion. That same executive added that by the end of 2023, Chime’s valuation had risen to $57 a share, implying a valuation of $21 billion.
Chime, founded in 2012, is a neobank that offers fee-free checking, savings accounts, and debit cards. It partners with The Bancorp Bank and Stride Bank to provide its services. The company caters to individuals making less than $100,000 and has more than 14.5 million customers, according to Forbes. Chime has raised $2.2 billion in funding from investors including General Atlantic, Tiger Global Management, and Sequoia Capital.
Chime was expected to list its shares in 2021 but has yet to do so. CEO Chris Britt has stated that the company is “IPO ready” and intends to become a large, public company. However, the company is currently waiting to see how the economy and markets play out in the first half of 2024.
It is unlikely that Chime will be acquired due to uncertainties surrounding its valuation, and the company’s goal is to become a public company. Chime’s chief corporate affairs officer has stated that the company is “not for sale” and plans to advance its IPO plan when it makes sense for the business.
