Listed on Thursday, Chime is the "Alipay" and "Huabei" for the poor in the United States

American digital bank Chime is set to go public on Thursday, June 12, with a valuation exceeding $11 billion. This digital bank, which specifically serves low-income groups in the United States, has transformed from being rejected by over 200 venture capitalists a decade ago to becoming a "money printing machine" for some early investors. Early investor Crosslink Capital turned a $6.4 million investment into $430 million, yielding a return of over 67 times.

As a fintech unicorn focused on the sinking market, Chime provides financial services similar to "Alipay + Huabei" for low-income individuals through no monthly fee accounts, cash advances, and smart savings tools.

America's "Poor Man's Alipay + Huabei"

Chime was founded in 2013 and is headquartered in San Francisco, with its core users being Americans with a monthly income below $100,000. By partnering with Bancorp Bank and Stride Bank, Chime launched features such as no monthly fee accounts and early paycheck access (saving 4-5 working days), addressing urgent needs for low-income groups.

As of March 2025, Chime has 8.6 million active members, a 23% increase in user base compared to 2024, with 67% of members using it as their primary account, making it the "Alipay" for low-income groups in the United States.

At the same time, Chime launched the MyPay small loan product in 2023, allowing users to "consume in advance," similar to the "Huabei" model, with the loan business contributing 12% of its first-quarter revenue.

Early Investors Reap Sky-High Returns

In 2014, when Chime's CEO Chris Britt pitched his "no-fee bank account" concept to venture capitalists, the responses were mostly polite rejections. The Information reported that investors would question, "What's the problem? I don't pay any fees at Morgan Stanley; I don't understand this business model." Over 200 institutions said no.

However, two relatively unknown early investment firms saw an opportunity. Crosslink Capital invested $6.4 million in the A round of financing in 2014, and this investment is now worth approximately $430 million, even though the company has already sold over $80 million worth of shares in the secondary market.

PivotNorth Capital, founded by former Sequoia Capital partner Tim Connors, made a precise exit—selling all its shares in 2019 at a valuation of nearly $6 billion, achieving about 100 times return. Connors stated in an email, "This was the first significant monetization opportunity in my first fund, and I seized it."

However, well-known investment institutions that entered later became "the ones left holding the bag." Sequoia Capital's global equity fund and SoftBank invested in Chime at a valuation of $25 billion in mid-2021, now facing paper losses. Latecomers like General Atlantic have also seen significant reductions in returns The underlying reason is that Chime's valuation was inflated during the pandemic. During the pandemic in 2020, Chime experienced explosive growth, with revenue doubling to approximately $600 million. The zero-interest rate environment and the fintech boom pushed its valuation to a peak of $25 billion.

Valuation Controversy: Disruptor or Fee Collector?

According to analysis by The Information, the core issue facing Chime's valuation is: is it a true disruptor of the banking industry, or just a simple fee collector?

If benchmarked against the lending-focused company Affirm's 13 times expected gross profit multiple, Chime's valuation could reach $21 billion. However, if calculated based on the fee-focused company Remitly's 3.8 times multiple, its valuation would only be $6 billion.

Foundation Capital investor Charles Moldow stated, "The tragic history of fintech IPOs is that both banks and fintech companies optimize their valuations, and then the market loses interest in them over time."

As signals of a deteriorating consumer credit environment increase, whether this "financial infrastructure for the poor in America" can gain recognition in the public market will be answered by Thursday's performance