Digital banking platform Chime has raised up to $200m in a new funding round, according to a new US Securities and Exchange Commission filing.
While the filing does not indicate what round the capital has been raised in, it appears to be an extension to its Series E round it closed late last year. The digital bank secured $500m in December which put its valuation at $5.8bn.
The new filing indicates Chime has now raised a total of $700m in funding from 25 accredited investors. Some of the investors include DST Global, ICONIQ Capital and General Atlantic.
It is not clear what Chimeâ€™s new valuation will be following the new capital injection.
Chime joined the unicorn club in March 2019 when it raised $200m at a $1.5bn valuation, meaning it managed to triple its valuation in the months leading up to December and the $500m round.
According to a previous report, the digital bank is using the Series E funds to build new products and double the size of its team by the end of 2020. Reports also suggest the company may explore acquiring other FinTech companies.
Chime is a US digital bank which offers customers no hidden fees, access to wages two days early, automatic savings, payment card and other banking tools.
There has been a rise in the use of digital banks, a recent study from Juniper Research claims there will be 3.6 billion digital banking users by the end of 2024 â€“ currently there are 2.4 billion.
A host of digital banking platforms have been setting up in the US to capitalise on the interest in the market. Fellow US challenger bank Empower recently collected $20m in its Series A round to support its growth.
Across the pond into Europe, challenger banks are also reaping in popularity. UK-based Revlout reached a $5.5bn valuation last year after the close of a Series D round, while Germanyâ€™s N26 revealed it had reached five million customers and launched into the US, Slovenia and Greece.
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