Neobank Chime Files For IPO, With Eyes Toward Becoming One of 2025’s Largest Offerings
Do you hear that? Is it the IPO market cracking open after a rocky April — or just neobank ChimeCHYM filing its S-1? It could be both. One of the year’s biggest public listings is officially on deck, eyeing a potential valuation north of $25B. Here are the financial highlights:
- In FY 2024, Chime pulled in $1.67B in revenue (+30.4% year-over-year), with average revenue per user (ARPU) hitting $251 (+8% YoY) from its 8.6M active users (+23% YoY).
- Historically, losses have been a hurdle for Chime, with net losses in 2022, 2023, and 2024 of $470.3M, $203.2M, and $25.3M, respectively. However, the firm posted $12.9M in net income in Q1, which bodes well for its profitability prospects.
Where’s the mint? Roughly 80% of Chime’s top line comes from interchange — the fees generated from debit and credit swipes. Its debit and credit-building cards drive most of this volume. However, the fintech has made new efforts to diversify its financial inflows, including rolling out a subscription product that offers greater bank yields and additional services. If the team tweaks its marketing spend, which made up 34% of its expenses in 2024, it could unlock significantly more profit, even if that slows the pace of user growth.