Digital only banking platform Chime, the San Francisco, California based company has picked up a $200 million fresh funding as part of Series D financing which now values the company to $1.5 billion. DST Global led the fresh financing along with a clutch of new and existing investors that included Coatue, General Atlantic, ICONIQ Capital, and Dragoneer Investment Group, Menlo Ventures, Forerunner Ventures, Cathay Innovation, and others. The current round of capital infusion takes the total capital secured by the company to over $300 million (312.5 million). Chime last raised $70 million in May last year from Menlo Ventures.
The company plans to utilize the freshly raised funding to launch various new products in multiple categories that include credit building and short-term lending. The fresh funds will also be used to strengthen the current Chime team along with the leadership expansion. The company plans to take the team size in San Francisco to over 200 employees.
Chris Britt and Ryan King had launched the platform in 2013 after the duo realized that the millennial audiences were not into the traditional banking styles and that there was no need of physical branches of the banks. The platform offers "no fees" bank account. The company claims to have opened more than FDIC-insured bank accounts on the platform, making it the largest brand in the digital banking segment.
Britt, commenting on the capital infusion said, “We’re excited to welcome some of the world’s leading growth investors to Chime. Banking should be free, helpful and easy to use but traditional banks are reluctant to embrace this reality. We aim to set a new standard in the industry by using technology to create services that are truly aligned with the best interests of consumers.”
Image Courtesy : chime