How to Invest in Chime Stock in 2024

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Chime is the largest neobank in the United States, offering banking services exclusively through a mobile app and website. Unlike traditional banks, Chime operates without physical branches, providing services via partnerships with The Bancorp Bank and Stride Bank. This model allows Chime to focus on delivering seamless, user-friendly technology to its 22.3 million active users, generating $1.3 billion in annual revenue at a fraction of the cost of traditional banks.

How to Buy Chime Stock

Chime is currently a private company, meaning it does not trade on public stock exchanges and lacks a stock symbol. However, accredited investors can purchase shares through Hiive, a marketplace for private company stocks.

Accreditation Requirements

To qualify as an accredited investor, you must meet one of the following criteria:

  • An individual annual income of $200,000 or a joint income of $300,000.
  • A net worth exceeding $1,000,000, excluding the primary residence.
  • Status as a qualifying financial professional.

On Hiive, investors can browse listings of Chime stock, negotiate prices, or accept asking prices set by sellers, who may be current or former employees, venture capitalists, or angel investors.

Can Retail Investors Buy Chime Stock?

Retail investors cannot currently purchase Chime stock while the company remains private. They will need to wait for an initial public offering (IPO), which is expected to occur in 2025. Until then, retail investors might consider indirect exposure through SoftBank (SFTBY), which is a significant investor in Chime, although this exposure is highly diluted.

Chime’s Growth and Market Position

Chime has experienced rapid growth, with its customer base largely earning between $35,000 and $65,000 annually. The company is expanding its offerings to include lending services and investment accounts to attract higher-income customers. Despite its growth, Chime remains focused on providing fee-free banking services, differentiating itself from traditional banks.

Funding and Valuation

Chime has raised $2.3 billion from 34 investors, including major firms like Sequoia Capital, General Atlantic, Tiger Global, and Dragoneer Investment Group. In August 2021, Chime raised $750 million at a $25 billion valuation. However, due to changing market conditions, its current valuation is estimated to be closer to $10 billion.

Founders and Company Background

Chime was founded in 2012 by Chris Britt and Ryan King in San Francisco. Chris Britt, who serves as CEO, previously worked at Visa and Green Dot, bringing valuable experience in financial services to Chime. The company’s mission is to provide accessible and affordable banking services to underserved populations.

FAQs About Investing in Chime

What is Chime?
Chime is a neobank that offers banking services through a mobile app, focusing on fee-free services and seamless user experience.How can I invest in Chime before it goes public?
Accredited investors can purchase shares through Hiive, a platform for private company investments.When is Chime expected to go public?
Chime plans to go public in 2025, although no official date has been set.What are the risks of investing in private companies like Chime?
Investing in private companies involves risks such as limited liquidity, market volatility, and the uncertainty of an IPO timeline.Who are the major investors in Chime?
Major investors include Sequoia Capital, General Atlantic, Tiger Global, Dragoneer Investment Group, and SoftBank.

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