Chime Financial Starts U.S. IPO Effort On High Growth And Operating Breakeven

(11min)

Summary

  • Chime Financial, Inc. aims to raise expansion capital via a U.S. IPO.
  • The company targets sub-$100K-income-per-year Americans with a mobile-first platform and counts 8.6 million active members and a 67% unit margin on transaction processing.
  • Chime faces risks from reliance on two banking partners and intense competition but benefits from brand recognition and a large, growing addressable market.
  • Given its profitability milestone and accelerating growth, I anticipate strong investor demand for the CHYM IPO, pending more details on pricing and valuation.
  • Looking for more investing ideas like this one? Get them exclusively at IPO Edge. Learn More »

African businesswoman using mobile app on smart phone for finance and online banking

Drazen_/E+ via Getty Images

Chime Is Growing Quickly While Producing Profits

Chime Financial, Inc. (CHYM) has filed to raise $100 million in an IPO of its Class A common stock, according to SEC S-1 registration information.

CHYM operates a

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This article was written by

20.99K Followers

Donovan Jones is a research specialist with 15 years of experience identifying opportunities for IPOs and public software companies.

He also leads the investing group IPO Edge, which offers actionable information on growth stocks through first-look IPO filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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