Discover top fintech news and events!
Subscribe to FinTech Weekly's newsletter
Read by executives at JP Morgan, Coinbase, Blackrock, Klarna and more
Chime Financial Files to Go Public: A Key Moment for the Fintech IPO Market
Chime Financial, a leading digital bank that offers fee-free banking services, has filed to go public, marking a significant development in the fintech IPO market. This move comes at a time when the sector is attempting to recover from a years-long slump in IPO activity. Chime, which partners with The Bancorp and Stride Bank to offer its banking services, will look to go public under the ticker symbol "CHYM" on the Nasdaq.
While Chime has yet to announce the number of shares it will issue or set an expected price range for the offering, the company’s filing is being seen as a crucial test for the broader IPO market. After years of market uncertainty and high interest rates, Chime’s filing could provide investors with a glimpse into the future of fintech IPOs and whether the sector can bounce back from its recent downturn.
READ MORE:
Chime Delays IPO Amid Market Turmoil Linked to New U.S. Tariffs
Chime’s Financial Growth and Investor Expectations
Chime reported revenue of $1.7 billion in 2024, a notable increase from the previous year. However, the company has not yet posted a full-year profit, though it did report a net income of $13 million in the first quarter of 2025, according to its recent filings. This revenue growth, paired with early profitability, makes Chime an intriguing prospect for investors.
The fintech industry, especially in recent years, has faced challenges when it comes to IPOs. The market saw a significant slowdown between 2022 and 2024, with only 164 companies going public compared to 311 in 2021. Chime’s IPO is seen by many as a potential turning point for the market.
Samuel Kerr, head of equity capital markets at Mergermarket, noted that Chime’s offering would likely be one of the first large fintech deals to test the current market conditions. The success or failure of this IPO could set the tone for other fintech firms considering going public in the near future.
Challenges and Opportunities for Chime in a Changing IPO Landscape
Chime’s IPO filing comes at a time when the broader IPO market remains in a state of uncertainty. While some fintech companies have seen success, many others have faced difficulties, making the environment challenging for new market entrants. According to Kerr, while there’s cautious optimism for Chime’s IPO, the market remains a "buyers’ market," meaning that investors are likely to be more cautious with their valuations.
This cautious approach could limit Chime’s ability to set an aggressive valuation for its public debut. Still, Chime’s IPO offers an important opportunity to gauge investor sentiment and test the resilience of the fintech sector in the current economic climate. The company’s ability to balance its growth ambitions with the market’s expectations for profitability will be key in determining its success.
