Chime, the San Francisco-based consumer fintech and one of the largest digital-only financial services providers in the U.S., has reportedly postponed its initial public offering (IPO), originally slated for 2025.
The decision, highlighted in a CNBC report, comes as Silicon Valley grapples with plunging valuations and a wave of delayed IPOs, largely attributed to economic uncertainty following President Donald Trump’s sweeping tariff announcements.
This setback marks another chapter in Chime’s on-again, off-again journey to the public markets, reflecting broader challenges facing the tech and fintech sectors.
Founded in 2012, Chime says it has built a reputation by offering fee-free banking services tailored to younger, cost-conscious consumers frustrated with traditional banks.
With 38 million customers and a reported 30% revenue increase to $1.7 billion in 2024, Chime appeared poised for a successful IPO, potentially valuing the company at $10 billion—down from a $25 billion peak in 2021.
The company filed for its IPO with the SEC in December 2024, with Morgan Stanley tapped to lead the effort.
However Chime has now joined a growing list of tech firms, including Klarna and StubHub, in hitting pause on its public debut amid market instability.
The catalyst for this delay is a volatile economic environment triggered by Trump’s tariff plan, unveiled earlier in the week.
As detailed in CNBC’s update, the Nasdaq suffered its worst week since the COVID-19 pandemic, plummeting 10% as investors recoiled from risky assets.
The tariffs, set to impose a 20% levy on most imports, have raised fears of inflation, supply chain disruptions, and a potential U.S. recession—with JPMorgan estimating a 60% likelihood by year-end.
This turbulence has effectively shuttered the IPO window, with professionals like Phil Haslett of EquityZen declaring, “All flights are grounded until further notice.”
For Chime and other companies, the timing couldn’t be worse.
The fintech sector, already battered by a “fintech winter” in 2022 that saw Chime shelve earlier IPO plans and cut 12% of its staff, had been banking on a 2025 recovery.
The company’s leadership, led by CEO Chris Britt, had previously described Chime as “IPO-ready,” awaiting only favorable market conditions.
Now, with valuations sinking and investor appetite for risk evaporating, Chime faces a potentially lengthy waiting period.
Lise Buyer, an IPO adviser, suggested private companies like Chime must now refine plans to stretch existing funds, a sentiment echoed by posts on X lamenting the “officially closed” IPO window.
This delay underscores broader Silicon Valley issues, as tech professionals who backed Trump’s 2024 campaign—like Elon Musk, who donated nearly $300 million—see early returns falter.
While Chime’s fundamentals such as product development remain strong, its IPO fate hinges on market stabilization.