FinTech Roundup: Chime’s IPO, Funding Rounds and Acquisitions Cap a Busy Week

May is only half over and has already proven to be a month full of FinTech activity, ranging from high-profile initial public offerings (IPOs) to acquisitions, underscoring the momentum behind platforms changing financial services and money movement.

After years of on-again, off-again movement toward a public listing in the United States, Chime made it official this week, filing its IPO documents with the Securities and Exchange Commission.

Chime’s SEC Filing Details Huge Addressable Market

Chime estimated that its serviceable addressable market offers up to an $86 billion annual revenue opportunity as it brings digital debit, credit, lending and checking accounts to those customers, calculated by multiplying the average revenues derived from “highly engaged” members of $442 by 196 million individuals earning up to $100,000 annually.

That revenue opportunity can grow to an annualized pace of $426 billion by targeting consumers who earn up to $200,000 yearly, the filing said. The company has 8.6 million active members — up 23% from 2024 — where 67% of them use Chime as their primary financial provider.

Trading and investment platform eToro filed earlier this year to go public and debuted on the Nasdaq stock exchange this week. The company raised more than $300 million and surged 29% on its initial day of trading, closing at $69 a share, above the expected range of $46 to $50.

The company unveiled a cryptocurrency trading platform in 2019 and U.S. stock investments at the beginning of 2022. The company’s registration statement with the SEC revealed that revenues last year came in at $12.6 billion, up 223% from the previous year.

Acquisitions in the Mix

Platforms have also been the target of acquirers.

DAT Freight & Analytics announced in a Thursday (May 15) press release that it struck a deal to acquire FinTech Outgo, which is focused on payment processing for the trucking industry. Financial terms of the deal were not disclosed.

Outgo provides invoicing, factoring and back-office automation for trucking firms. The company settles approved unpaid invoices within four hours, “with many processed in as little as 15 to 90 minutes,” according to the release.

The combined operations will offer carriers in DAT’s network access to Outgo’s artificial intelligence-powered payment services. Trucking load posted to the DAT network with a blue checkmark will be eligible for factoring, “so carriers can feel assured that they’ll get paid quickly,” the release said.

In other acquisition-related news, SavvyMoney, which offers financial wellness tools and personalized loan offerings, announced in a Monday (May 12) press release that it acquired CreditSnap, a FinTech solution provider that powers “intelligent integrations to digital loan, deposit and account onboarding solutions for banks and credit unions.”

The deal will help SavvyMoney build out its platform and underpin lending and deposit growth, the release said. CreditSnap’s platform, for its part, integrates with more than 73 loan origination, core and digital banking systems. Loan application time can be reduced from 12 minutes to about 2 minutes. Financial institution clients have reported a 20% to 40% increase in loan volume and deposit funding rates as high as 78%.

Funding Rounds Announced

In Egypt, FinTech Money Fellows announced in a May 8 press release a $13 million funding round led by Al Mada Ventures and DPI Venture Capital, with participation from Partech and CommerzVentures.

The FinTech helps digitize “money circles,” also known as rotating savings and credit associations, which entails groups of people pooling money monthly, Finextra reported May 5.

“So, if 10 people agree to pay $100 for 10 months, each month one member receives $1000,” the report said.

Money Fellows uses behavioral and other data to connect those savers and borrowers, per the report.

The new capital will help Money Fellows enhance its app, expand into new markets, and grow its team, the release said

Ravio, a real-time compensation data platform, announced in a May 7 press release that it raised $12 million in a Series A funding round led by Spark Capital. The FinTech helps client firms fine-tune and optimize their compensation strategies as they seek to attract and keep employees and executives while preventing pay inequalities.

The London-based company will use the investment to continue its international expansion, grow its product and develop market insights, the release said.