Chime Financial is preparing to go public with an estimated price range of $24 to $26 per share. At that level, the online bank’s implied valuation is about $9.47 billion, or 5.7 times its projected 2024 revenue of $1.67 billion. That puts it right in line with rival SoFi Technologies, currently trading at 5.6 times revenue. The message is clear: fintech valuations have come back to earth — and that’s a positive sign of sector maturity.

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Back in 2021, fintech stocks were priced at much higher multiples. SoFi, for example, had a market cap of nearly $18 billion based on just $738 million in revenue, a multiple of roughly 24x. But those inflated valuations didn’t last. After the tech-stock correction of 2022, investors began prioritizing profitability and sustainable growth over hype.

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Chime has adjusted accordingly. The company now serves 8.6 million active users and posted $12.94 million in net income on $518.74 million in revenue in Q1 2025. A year earlier, it had earned slightly more — $15.9 million — but on lower revenue of $391.97 million, signaling continued business expansion.

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A More Measured Market

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The broader fintech landscape has changed. Companies once positioned as high-growth tech firms are now being valued more like traditional financial institutions. For context, Microsoft trades at over 10x revenue, while JPMorgan Chase — the most valuable U.S. bank — sits at around 3.7x. Chime’s revenue multiple falls neatly in between, reflecting its tech-forward model and its bank-like service base.

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As Reena Aggarwal from Georgetown’s Psaros Center explains, many fintechs leaned into the “tech” label to justify lofty valuations. Today, investors are more cautious, which has reopened the IPO window — but only for companies with strong financials.

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Recent activity supports that shift. EToro went public in May and is already trading 20% above its IPO price. Meanwhile, Circle Internet, a stablecoin issuer, just increased both the price and size of its IPO, now targeting up to $896 million in proceeds. Interest from ARK Invest, with a potential $150 million commitment, highlights a renewed institutional appetite for solid fintechs.

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A Focused Business Model

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Chime’s strength lies in its targeted strategy. Unlike big banks that cater to high-net-worth individuals, Chime focuses on Americans earning up to $100,000 a year — a group often overlooked by traditional players. And since Chime isn’t a fully regulated bank, it operates with more flexibility and lower overhead.

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The company’s backers include major venture firms like DST Global, Crosslink Capital, and Menlo Ventures. While the excitement around fintech IPOs is more restrained than in 2021, this more grounded approach may actually offer stronger long-term outcomes — for companies and investors alike.

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