Finally, Digital Consumer Bank Chime moved forward with the IPO by submitting S-1 documents on Tuesday. Chime reportedly submitted paperwork for the Confidential S-1 in December.
S-1 filings usually reveal all types of information covering financial, legal, and other risk factors. However, there are still many blank spaces in Chime's S-1 documentation. I don't know how many shares I want to sell, or what price I have. Chime may be aiming to raise $1 billion, IPO expert Renaissance Capital believes.
We also don't know how many shares the Insider will sell as part of the IPO. These include billionaire Yuri Milner's DST Global, Michael Stark's Crosslink Capital, billionaire Len Brabatnik's Access Industry, and its key supporters, including VC firm Atlantic, Menlo Ventures (led by board member Sean Carolan), Vanthe France's Innovation Fund, and ICONIQ.
Pitchbook estimates that Chime raised $2.65 billion as a private company. As a result, there are even more VCs on the cap table. They could also take part in big paydays. For example, Kirsten Green's Forerunner Ventures and Hunter Walk's homemade Brew both claim to chime as portfolio companies.
Chime provided one detail suggesting that he thinks it will become a huge IPO. Chime joined the army of well-known investment bankers such as Morgan Stanley, Goldman Sachs and JP Morgan.
Finance shows why investors are excited. The company ended 2024 with revenues in 2024, $25 million in revenue and $25 million in losses, but in 2023 its revenue was around $1.3 billion and $203 million in losses. So with Silicon Valley Mathematics, it will get it on track for $2 billion this year and get closer to profitability.
Chime offers consumer checks, savings, debits and credit cards, and charges 8.6 million active users.
One interesting and obvious thing in the document. Board member Cynthia Marshall served as CEO of the Dallas Mavericks from 2018 to December 2024. Meanwhile, Chime became a sponsor of the Mavericks. Over three years (2022-2024), he paid about $33 million and won the Chime logo on his team's jersey. Without that deal, it could have already made a profit.