Fintech Startup Chime Raises $18 Million
Chime closed $18 million in Series B financing led by Cathay Innovation. Northwestern Mutual Capital, Omidyar Network, Crosslink Capital, Aspect Ventures, Forerunner Ventures and Homebrew Ventures also participated in the offering.
Chime created a new kind of bank account that aims to help customers avoid fees, save money effortlessly, and improve their finances. Chime members get a debit card, a spending account, a savings account, and an app that makes financial automation simple and keeps members in control. Users are able to access more than 24,000 fee-free ATMs and 30,000 cash-back locations to get cash on-the-go. Every time they pay bills or make a purchases with a Chime card, Chime rounds up the transaction amount to the nearest dollar and transfer the excess amount from users’ spending accounts into their savings accounts.
The company revealed that the new financing will be used to accelerate growth and to develop new products to improve financial lives.