A war is brewing in digital banking, and one leading player just loaded up on ammunition.
Chime, the largest of a new breed of branchless U.S. banks, raised $500 million in a series E round it closed recently valuing the company at $5.8 billion, according to people with knowledge of the situation. That is a remarkable increase from its last round nine months ago, when it raised $200 million at a $1.5 billion valuation.
The move shows that for select start-ups, massive amounts of cash are still readily available, even after investors have grown skittish after Uber and WeWork exposed excesses in private funding markets. The $500 million it raised, led by DST Global, is the biggest single equity investment for a so-called challenger bank, eclipsing the $400 million garnered by Brazilian firm NuBank, according to CB Insights. Read rest here.