Chime Seeks Goldman Sachs Help For Its Blockbuster NYSE IPO

Digital banking provider Chime Financial, Inc. has asked Goldman Sachs to help it with preparations for an initial public offering (IPO) in New York, according to people familiar with the matter, Krystal Hu, Anirban Sen, and David French reported for Reuters.

Photo Insert: The financial technology startup will likely be valued at a substantial premium to its valuation of $25 billion from an August funding round led by Sequoia Capital.

The financial technology startup will likely be valued at a substantial premium to its valuation of $25 billion from an August funding round led by Sequoia Capital, the sources said, adding Chime could aim for a valuation of nearly $40 billion.

A spokesperson for Chime denied that Goldman Sachs was advising the company. Goldman Sachs declined to comment.

In a statement earlier on Friday, the spokesperson said: "While Chime intends to be a publicly listed company someday, we have not made any decisions on underwriters and have no immediate plans for an IPO."

Having been valued at $1.5 billion only three years ago, its blockbuster listing would underscore how Chime has managed to take market share from traditional banks thanks to checking accounts that offer payday advances and no overdraft fees.

Chime interviewed investment banks in recent weeks before deciding to give Goldman Sachs a leading role in its listing, the sources said. Other banks will be added to the roster of underwriters in the run-up to its IPO, which could come as early as this spring, the sources added.

The sources, who requested anonymity, cautioned that the timing and size of the offering are subject to market conditions. Launched by former Visa Inc. executive Chris Britt and Comcast Corp alumnus Ryan King in 2012, Chime offers its services through partnerships with brick-and-mortar banks, including branded checking accounts with user-friendly features such as free overdrafts.

It makes money by earning a fee from payment processors such as Visa every time a customer uses a Chime debit or credit card.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic