Introduction
Chime, a digital banking startup (neobank), went public with one of the most awaited IPOs of 2025. The company raised $864 million by pricing its shares at $27, which was higher than expected. This gave it an opening market value of about $9.8 billion.
But that’s not where the story ends. Chime shares opened at $42, and its value jumped to $14.5 billion by midday. It finally closed the day at $37, with a market cap of around $12 billion.
Chime’s Financial Performance
Chime’s strong financial results helped gain investor trust. Here’s a quick look:
| Year | Revenue | Losses / Profit |
|---|---|---|
| 2023 | $1.3 billion | -$203 million (loss) |
| 2024 | $1.7 billion | -$25 million (loss) |
| Q1 2025 | $519 million | $13 million (profit) |
Chime became profitable for the first time in early 2025. But the company also said future profits may vary as it plans to spend more to grow.
Early Struggles: 100 Investors Said “No”
Chime was started in 2012 by Chris Britt and Ryan King. The early years were tough. In 2016, they were trying to raise more funds and pitched over 100 investors — all said no.
Chime was almost out of money. But the founders didn’t give up. They believed in their idea: offering free, easy-to-use online banking for working-class people, making money from small fees paid by card companies (called interchange fees).
A Lifesaving Investment
Just when it seemed like Chime would shut down, Lauren Kolodny, a partner at Aspect Ventures (now co-founder of Acrew Capital), said yes. She invested $9 million, which saved the company.
It was the only offer they had at that time.
Lauren believed in the founders’ passion and supported them for years. She was even invited to ring the opening bell at Nasdaq during the IPO.
At the time, she bought Chime shares at just 26 cents each. With the IPO valuation reaching billions, that small investment turned into a massive return.
Chime’s Business Model
Chime is not a traditional bank, but it partners with banks to offer financial services online. Its main features include:
- No overdraft fees
- Early access to paychecks
- Credit-building tools
- Free accounts
Chime targets everyday people who want simple, honest banking without hidden charges.
IPO Success and Public Response
While Chime’s IPO value of $14.5 billion is lower than its last private valuation of $25 billion, the response from the public was still very positive. It shows that investors still trust in Chime’s long-term vision.
A Personal Touch
During the company’s IPO roadshow, something special happened. While checking into a building, a security guard recognized the Chime card in the CEO’s wallet. He smiled and said:
“Checking and savings, baby!”
It was a small moment, but it reminded the founders that they had built something real — something people use and love.
Conclusion
Chime’s journey is a perfect example of not giving up. From being rejected by over 100 investors to becoming a publicly traded company worth billions, Chime’s story proves that strong belief and persistence can pay off.
This IPO isn’t just a business success — it’s a personal victory for the founders, their team, and early supporters like Lauren Kolodny.