With the rise of financial technology companies like Chime, many investors are eager to invest in these high-growth startups. However, Chime is still a private company and does not yet allow direct public investment. While an IPO may occur in the future, for now investors cannot buy Chime stock directly. Instead, those seeking fintech exposure can consider investing in public companies powering digital banking, payment networks enabling these services, or venture capital and private equity funds with stakes in private fintechs like Chime. Overall, Chime’s success highlights the huge potential in fintech, but direct investment is not yet possible.
Chime remains a private company without publicly traded shares
As a leading digital bank in the United States, Chime has seen tremendous growth with over 12 million accounts. However, the company remains private and has not yet gone public through an IPO. Unless acquired by a public company, the only way to gain shareholder status is to invest through private market channels like venture capital funds that hold equity in Chime’s cap table. But these restricted investment vehicles are only open to accredited investors. So for most individuals, investing in Chime directly is not possible currently.
Future IPO may allow public Chime investment
Chime does appear to be on the path towards a potential IPO. The company has raised over $1.5 billion in funding, including a $750 million round in 2021 valuing the company at $25 billion. However, in 2022 Chime put IPO plans on hold amidst the volatile market environment. While going public could occur when conditions improve, this is not guaranteed. Investors should watch for any IPO announcements, after which buying shares should be open to the public.
Invest in public fintech and payment networks
Since Chime stock is not directly investable yet, investors can look to public companies related to Chime’s business. Payment networks like Visa and Mastercard facilitate transactions through Chime accounts. Financial technology providers like Block (Square) and PayPal power services like digital wallets and peer-to-peer payments leveraged by Chime. And banks like JPMorgan and Goldman Sachs have growing digital banking initiatives as well. Such public fintech stocks can offer exposure to powering digital banking disruption and innovation like Chime.
VC and private equity enable private fintech investing
For accredited investors, options like venture capital and private equity funds provide a route to invest in private fintech companies before any IPO. Many top VC firms like Andreessen Horowitz hold large stakes in Chime after participating in funding rounds. Such private market exposure comes with more risk but can reward early investors substantially if successful. Secondary marketplaces are also emerging to provide liquidity in private company shares before a public listing.
While Chime has emerged as a leading digital bank, direct investment is not possible currently since it remains private. Alternatives like public fintech stocks and private market funds provide exposure to the space until any future Chime IPO.