On Thursday, Chime, one of this year’s most eagerly awaited IPOs, successfully launched its initial public offering, raising $864 million. Shares were initially priced at $27 apiece, exceeding the anticipated range of $24-$26, which established a starting market capitalization around $9.8 billion.
Despite settling at roughly half of its previous $25 billion private valuation, investor enthusiasm quickly kicked in as retail investors pushed the stock substantially higher. By midday, share prices climbed dramatically to $42, marking the company’s valuation at approximately $14.5 billion.
The strong debut was backed by Chime’s impressive financial trajectory. The neobank earned $1.3 billion in 2023, rising to $1.7 billion by 2024. Losses significantly narrowed over the same period, falling sharply from $203 million in 2023 down to just $25 million in 2024. Early 2025 revenues continued strong, reaching $519 million for the first quarter and resulting in a net profit of $13 million. Company management cautioned, however, that future profits aren’t assured due to heavy investments aimed at accelerating growth.
The road to success has not been smooth for the fintech startup. Founded in 2012, Chime faced numerous hurdles during its initial years. Raising capital proved particularly challenging during the critical Series A extension period in early 2016. According to co-founder Ryan King, the company approached at least 100 venture capital firms, only to hear rejection after rejection. With cash reserves nearly exhausted and prospects dwindling, Chime found itself on the brink.
King vividly recalls the discouraging process, pointing out that Chime likely received more investor rejections during that difficult year than even high-profile startups had faced. The situation appeared almost unsalvageable, yet King and fellow co-founder and CEO Chris Britt continued to believe passionately in their mission: to create a digital banking platform free of burdensome fees, targeted at working-class consumers. Chime’s approach included eliminating traditional banking fees like overdraft charges and providing innovative tools for users, such as credit-building cards secured by cash.
Ultimately, a single venture investor came to their rescue—Lauren Kolodny, then a partner at Aspect Ventures (and today co-founder of Acrew Capital). Kolodny offered Chime its sole term sheet that season, opting to invest a crucial $9 million. King’s gratitude to Kolodny runs deep; she’s credited for believing steadfastly in the founders’ vision, zeal, and integrity. Honoring her pivotal role, Kolodny joined Chime’s founders at the NASDAQ opening bell ceremony on IPO day.
Kolodny’s timely decision to fund Chime at just 26 cents per share looks remarkably prescient today. Her small round ultimately enabled Britt and King to continue building the business. Subsequent capital rounds brought in approximately $2.65 billion.
Even amid their triumph, King recalls a telling moment leading up to the IPO. While he and Britt visited an opulent, marble-clad building reminiscent of scenes from the TV show “Billions” for a roadshow stop, a security guard noticed Britt’s card, remarking enthusiastically that he himself was a proud Chime customer with “checking and savings.” The moment, simple yet powerfully symbolic, highlighted the wide reach and impact of a company that nearly collapsed before it had truly begun.
