Online Bank Chime Is Close to New Funding at a $1.5 Billion Value

(Bloomberg) -- Chime, a financial technology startup that offers online banking services, is close to raising $300 million at a $1.5 billion valuation, according to two people familiar with the matter.

The San Francisco-based company last raised in May at $500 million, meaning this new round triples its valuation. Menlo Ventures led the last round, and DST Global is likely to lead the one currently closing, the people said. They also said the amount being raised could change and asked not to be identified discussing private information.

Chime declined a request for comment.

Chime has garnered more than 2 million accounts since it was founded in 2013. It offers debit cards, savings accounts and checking accounts to its members, and promises no hidden fees. Rather than profit off of the fees, the company earns revenue by taking part of the interchange fee on its debit card offered through Visa Inc.

Chime is part of a growing group of online-only banks. Others like Revolut and N26 have also recently raised at much higher valuations, with DST leading Revolut’s $250 million round early last year at a $1.7 billion valuation. N26 closed its funding round a few weeks ago at a $2.7 billion valuation.

To contact the reporter on this story: Julie Verhage in New York at jverhage2@bloomberg.net

To contact the editors responsible for this story: Mark Milian at mmilian@bloomberg.net, Anne VanderMey, Alistair Barr

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