As valuations of fintech companies have fallen over the past two years, along with venture capital funding, perhaps no one has suffered more than Chime Financial.
Actions of Blockformerly Square, have fallen approximately 77% since August 2021, while Paypal is down about 79% over the same period. Privately held Chime, valued at $25 billion as recently as 2021, has also seen its value plummet. But by how much?
Price data from Forge, an online marketplace for buying and selling shares of private companies, marked Chime shares at $16.40 on Jan. 23, a spokeswoman said. That implies a valuation of just $5.9 billion, a 76% drop from 2021, when Chime shares were valued at around $69.07.
Chime was one of the most actively traded stocks on the private exchange Hiive in 2023, which saw a total of 130 buy and sell orders, according to a spokesperson. Chime last traded at $18.50 per share, at the end of the third quarter, on a block of 60,000 shares, the spokesperson said. This implies a valuation of $6.7 billion.
Current indications of buy-side interest in Chime are around $16.50 per common share, for blocks worth approximately $2 million to $5 million, the Hiive spokesperson added. The most recent sell orders for Chime on Hiive range from $18.50 to $26, with associated block sizes ranging from 5,000 to 30,000 shares. Most sellers would be in the price range between 50 and 250 euros, the spokesperson said.
A company executive said Fortune that they were not surprised to see such a drop in Chime’s value, to around $6 billion. “This assessment seems more reasonable than the other,” they said.
Others say they are skeptical about the figures released to secondary markets. A Chime investor, who has held a stake for about 10 years, said his company conducted a comprehensive analysis of Chime’s business last June that valued the shares at more than $45, or a total valuation of about $16 billion. of dollars. The same executive added that as of December 31, Chime’s valuation had increased to $57 per share, implying a valuation of $21 billion.
“We have been very pleased with our investment in Chime since the beginning, and we remain excited about the company’s current execution metrics AND its long-term growth potential,” the executive said via text message.
Founded in 2012, Chime is a neobank that offers traditional financial services such as fee-free checking, savings accounts, and debit cards. It does not have a banking charter, but instead partners with Bancorp Bank and Stride Bank to offer its services.
According to Chime’s website, customers have access to more than 60,000 ATMs, and perhaps the biggest benefit for many is Spot mewhich allows overdrafts of up to $200. Rather than seeking high-net-worth individuals, Chime targets those making less than $100,000. The company declined to share with Fortune its current clientele, but Forbes in 2022 attached the number stands at more than 14.5 million.