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The Sun
2 days ago
- Business
- The Sun
Pertama Digital confident of returning to profitability after acquisition of two companies
KUALA LUMPUR: Government e-services provider Pertama Digital Bhd (PDB) expects to return to profitability after acquiring 80% stakes in two companies, D-Ron Singapore Pte Ltd (D-Ron SG) and D-Ron Malaysia Sdn Bhd (D-Ron MY) with a purchase agreement that includes RM32.4 million profit guarantee over two years. Pertama Digital Group CEO Lim Nasrul Halim said the profit guarantee offered by D-Ron is backed by an escrow arrangement to ensure the guarantee is fully realised. There is also a two-year service agreement with the current founders and leadership team of D-Ron as Lim said it was important for D-Ron to undergo a smooth transition into a Pertama Digital subsidiary. 'We are already slightly profitable according to last quarter's financial report, but it isn't good enough for us and our shareholders. 'We are confident about our profitability mainly because of our acquisition of D-Ron which will come with a profit guarantee of RM32.4 million,' he told reporters during a press conference at Pertama Digital's corporate headquarters today. Lim said the acquisition of D-Ron was not for the sake of profitability but because the companies, which specialise in information technology and surveillance hardware distribution, complemented well with others in the Pertama Digital group. 'We are not acquiring these companies for the sake of profitability. It's strategic and there's a bigger picture to it.' Pertama Digital plans to acquire D-Ron SG for RM101.14 million (S$30.41 million) and D-Ron MY for RM4.99 million from three vendors, bringing the total amount to RM106.13 million in cash. Recently, Pertama Digital received approval from Bursa Malaysia for an extension until Oct 31, 2025, to submit its regularisation plan. Lim said he was confident that the company will be able to submit the regularisation plan earlier than end October. 'We are working hard towards our due diligence process and D-Ron's leadership has been helpful in expediting the process of preparing the plan. Once we have shareholder approval we can submit the plan early.' Initially, Pertama Digital failed to submit a regularisation plan by the Feb 9, 2025 deadline as required by Bursa Malaysia. Its conditional acquisition of D-Ron forms the cornerstone of Pertama Digital's regularisation plan built on a series of high-impact deliverables. The deliverables include the completion of a major acquisition with strong earnings visibility, positioning Pertama Digital as a key player in digital infrastructure; the evolution of MyPay to strengthen its role as a trusted digital backbone for government transactions and public sector innovation; and a partnership with Infobip to enhance public sector's communication infrastructure and government-to-citizen engagement. Other ongoing projects include eJamin, a bail payment system that has processed over RM1 billion in transactions, and BizKecil, a platform supporting small enterprises. The company is also exploring a cybersecurity collaboration with Netsec Sdn Bhd for the public sector. Pertama Digital said these efforts form part of its plan to strengthen financial performance and operational viability. The company will now proceed with comprehensive due diligence on D-Ron Group and will convene an extraordinary general meeting to seek shareholder approval. Pertama Digital will also work closely with Bursa Malaysia to secure all necessary regulatory clearances.
New Straits Times
2 days ago
- Business
- New Straits Times
Pertama Digital launches initiatives to bridge digital divide
KUALA LUMPUR: Pertama Digital Bhd is accelerating its efforts to bridge the digital divide in Malaysia, particularly for underserved groups, including schoolchildren and micro-enterprises. At a press conference on Tuesday, Chief Executive Officer Lim Nasrul Halim revealed that current core projects underway include Kocek Pintar and BizKecil, part of its push for inclusive digitalisation. "Kocek Pintar, in collaboration with the Pintar Foundation, is being positioned as a cashless savings and financial literacy solution for students in underserved schools. "With support from the Education Ministry and various digitalisation partners, we want to instil financial literacy from a young age. "Children can track their balance, save automatically, and even be rewarded for good saving habits," Nasrul said during the press conference. Nasrul added that the rollout includes providing digital payment infrastructure for school canteens, bookshops, and administrative offices, helping public schools modernise their operations with minimal barriers. Meanwhile, BizKecil targets micro and small business owners, especially those in the B40 group, providing simple digital finance tools and access to microloans in partnership with a local financial institution. "We have spoken with Persatuan Penjaja dan Peniaga Kecil Melayu, which represents around 400,000 informal traders nationwide, to improve business decisions and unlock access to credit. "The platform provides simple digital bookkeeping solutions, QR payment features, and automated profit-and-loss tracking. Both initiatives are expected to launch in the fourth quarter of this year," Nasrul added. Alongside these, other ongoing efforts include the development of CyberShield Malaysia, a national cybersecurity framework, and the enhancement of MyPay into a full-fledged digital government service platform. Pertama Digital is targeting a return to profitability in financial year 2025, backed by a RM32.4 million profit guarantee over two years from D-Ron and growing contributions from its digital projects. Pertama Digital is now executing a 100-day integration plan, combining surveillance and analytics technologies to strengthen its smart city and enforcement technology offerings. "We also have approached companies from Europe and China, offering to build or integrate AI-driven systems with us. "We are not acquiring for the sake of revenue or profit. If there is a gap that would take us years to close internally, and the right partner has that expertise, we will consider partnerships or acquisitions," said Nasrul.
Yahoo
16-06-2025
- Business
- Yahoo
Is It Too Late to Buy the Chime IPO?
Chime spiked when it went public on Thursday, but it's trading substantially lower heading into this week of trading. The platform is popular, with 8.6 million active accounts accounting for just 3% of its current target audience. Engagement is rising, growth is accelerating, and it turns profitable in its latest quarter. These are all encouraging signs. 10 stocks we like better than Chime Financial › One of this year's most anticipated IPOs hit the market last week. Demand was strong for Chime's (NASDAQ: CHYM) offering. Underwriters were hoping to take the online banking specialist public between $24 and $26 a share, and they pushed it up to $27 on the eve of its exchange-traded debut. Chime stock opened at $43 when it eventually began trading three hours after Thursday's opening bell. But it went largely downhill from there. The shares closed at $37.11 on its first day of trading and then slid another 6% on Friday. Is it too late to buy Chime? No. The stock is still 29% above the underwriters' $27, but the shares enter this new trading week fetching less than what those who chased it during its first two days on the market had to shell out. There's a lot more to the Chime story than its limited post-IPO history. Let's see if it can ring a bell. Chime operates a growing fintech platform. As a branchless bank, or neobank, Chime offers online and mobile app access to basic banking services, including checking, high-yield savings, and debit cards. Unlike traditional brick-and-mortar institutions, Chime sweetens the pot with no account minimum fees and complimentary overdraft protection. Set up a direct deposit, and you can generate a healthy 3.75% yield on the idle cash in your savings account. The appeal is clear. The company's target audience is currently the 196 million Americans generating less than $100,000 annually, and it currently has less than 3% of that market penetrated among its 8.6 million active customers. This is a group that can sometimes live paycheck to paycheck, and Chime has lots of things that make it attractive to a widening user base, including a compelling fee schedule, flexibility, and the MyPay program that can advance up to $500 from an incoming direct deposit at no cost if it hits the account within 24 hours. Two-thirds of Chime users consider Chime their primary banking account. Chime hit the market at a good time. Revenue growth is accelerating. Its top line rose 27% in 2023 and stepped up to 31% growth last year. The top line came through with a 32% year-over-year increase in the first quarter of this year. The 8.6 million accounts the company currently services is a 23% jump over the past year and 82% over the past three years. Engagement is strong. Customers on average adopt 3.3 of Chime's product offerings. Average revenue per active account clocked in at $251 during the first three months of this year, and the average number of transactions was 54. Chime isn't yet a player for high rollers, but it still facilitated $121 billion in transactions over the past year. Thursday's trading high wasn't Chime's peak valuation. A couple of years ago, it closed on a private financing round that valued the upstart at $25 billion. Today's market cap is a little more than half that haul. Chime is getting better. Its annual losses narrowed last year, and it broke through with an operating profit for all of 2024. Actual profitability has been harder to come by, but it did get there in the first quarter of this year. The stock isn't cheap compared with many of the existing fintech leaders, even after the recent pullback from its initial pop on Thursday. Its revenue multiple north of 7 is well ahead of larger neobank SoFi (NASDAQ: SOFI) at 5.6. SoFi just turned profitable, and it's also been growing its business north of 20% for the past few years. Block (NYSE: XYZ) and PayPal (NASDAQ: PYPL) are less of a match to the Chime model. They're growing a lot more slowly, though they are profitable and trading at even lower multiples. Chime doesn't look cheap, but momentum is on its side. Growth is accelerating, and just the publicity surrounding its IPO this month should bring even more attention to the digital banking platform. Chime also believes that its product can eventually target even more affluent Americans, opening the door to even larger revenue per account and expanded product offerings. This can be a cutthroat market, but Chime is standing out at the right time. If it's able to keep growing its customer base and engagement, today's lofty valuation may seem like a bargain in the future. Before you buy stock in Chime Financial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chime Financial wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Block and PayPal. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short June 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy. Is It Too Late to Buy the Chime IPO? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economic Times
12-06-2025
- Business
- Economic Times
Chime IPO raises $864 million in long-awaited Nasdaq debut, cuts valuation nearly in half—here's what it means for fintech's big revival
Chime IPO has officially hit the stock market, raising $864 million by pricing shares at $27, slightly above expectations. Now trading under the ticker CHYM on Nasdaq, Chime's listing values the fintech at $11.6 billion, down from its $25 billion peak in 2021. Still, investor demand was strong, with shares expected to open at $42, reflecting a 56% jump. As a leading neobank with 8.6 million users, Chime's success could signal a rebound in the fintech IPO market. With steady growth, early profit signs, and top backers, Chime's debut is one of 2025's most watched tech IPOs. Tired of too many ads? Remove Ads Chime's Market Debut Highlights IPO Details : Chime raised $864 million by pricing its IPO at $27 per share , slightly above its marketed range of $24–26. Shares will trade under the ticker CHYM on Nasdaq. : Chime raised by pricing its IPO at , slightly above its marketed range of $24–26. Shares will trade under the ticker on Nasdaq. Valuation Drop : The offering values the fintech at about $11.6 billion fully diluted , sharply lower than the $25 billion private valuation in 2021. : The offering values the fintech at about , sharply lower than the private valuation in 2021. 1st-Day Momentum: Early estimated trading opens around $42/share—a ~56% premium—fueled by strong investor interest and recent fintech IPO successes. Why did Chime slash its valuation from $25 billion to $11.6 billion? Tired of too many ads? Remove Ads What is Chime's business model and how does it make money? MyPay for early access to direct deposits SpotMe, which allows limited overdraft coverage No-fee checking and savings accounts How has Chime performed financially in recent quarters? Who are Chime's major backers and IPO underwriters? What does the Chime IPO mean for the broader fintech market? Tired of too many ads? Remove Ads Is this a turning point for fintech IPOs? FAQs: After years of anticipation, the Chime IPO has finally made its debut on the Nasdaq, raising $864 million and grabbing strong investor attention. The digital banking startup priced its shares at $27, slightly above its marketed range of $24 to $26, signaling rising optimism in the fintech IPO market. Chime is now trading under the ticker symbol CHYM, and early indications suggest a strong opening around $42 per share, representing a 56% jump from its IPO listing not only marks a major milestone for Chime but also signals a possible revival of tech listings in 2025. The IPO values the company at about $11.6 billion fully diluted, a steep drop from its $25 billion private valuation in 2021, but still a major win in today's cautious IPO the peak of the pandemic tech boom, Chime was one of the most valuable fintech startups in the U.S., boasting a $25 billion valuation in 2021. But the market has changed drastically. Rising interest rates, investor focus on profitability, and tighter financial conditions have all led to a valuation reset for many tech the markdown, Chime's fundamentals appear strong. According to Reuters, the offering still attracted robust demand. The company's 2024 revenue grew by over 30%, and it even posted a rare profit in Q1 2025. Though it closed 2024 with a net loss of $25 million, Chime has shown that it's moving toward a more sustainable, profitable future—a factor that likely helped draw in big is a neobank, meaning it offers banking services online without physical branches. As of March 31, 2025, it had around 8.6 million active users, many of whom are everyday Americans looking for simple, low-cost banking solutions. Its standout features include:Chime's primary source of income is interchange fees—a small percentage earned from each debit card transaction. Every swipe adds up, and with millions of users making daily purchases, this model generates substantial recurring revenue. This approach aligns well with cost-conscious consumers, particularly low-to-middle income users, who prefer fee-free and flexible financials show signs of consistent growth. In 2024, the company's total revenue increased by more than 30%. While it posted a $25 million net loss for the year, its Q1 2025 profit stood out and was widely noted in media coverage, including Barron's. This kind of performance is rare for fintechs and indicates that Chime is transitioning from growth-at-all-costs to measured, sustainable shift in strategy is critical, especially at a time when investors are rewarding companies with clearer paths to profitability. Chime seems to be aligning well with this Chime IPO attracted some of the biggest names in the financial world. Its major backers include DST Global, General Atlantic, and ICONIQ Capital—firms known for backing successful tech unicorns. The IPO was managed by leading investment banks such as Morgan Stanley, Goldman Sachs, and JPMorgan Chase. Their involvement adds further credibility and investor confidence to Chime's to Bloomberg, this lineup of high-profile backers and underwriters reflects the significant interest in Chime, despite the broader market's caution toward tech successful Chime IPO could spark momentum for other fintech unicorns like Klarna, Gemini, Medline, and Cerebras Systems, which are all eyeing the public market. In recent months, we've seen a few fintechs like Circle and eToro make progress toward IPOs. If Chime's stock continues to perform well, it could reopen the door for many more tech listings in view Chime as a potential bellwether for fintech IPOs. Its strong debut may help rebuild investor confidence in startups that have stable user growth, revenue streams, and profitability in sight. Still, there are macroeconomic risks to watch—such as shifts in trade policy, inflation trends, and interest rate moves—that could impact IPO valuations going forward, as reported by IPO debut is more than a big raise—it's a signal that the market may be ready to welcome fintechs back after a long pause. While the drop in valuation compared to 2021 is notable, it reflects a broader market correction. What matters now is that Chime is showing financial discipline, solid revenue growth, and a growing base of loyal IPO priced at $27 per share, valuing it at $11.6 earns mainly from interchange fees on debit card transactions.
Yahoo
28-03-2025
- Business
- Yahoo
Chime adds instant loans
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Neobank Chime has rolled out instant loans, offering customers access to up to $500 at a fixed interest rate, without having to go through a credit check, the company said. The product, launched Friday, will offer three-month installment loans to pre-approved Chime customers who use the fintech's checking account for direct deposits. Chime will tap its technology and data sources to determine loan eligibility, and customers pre-approved for a loan will be notified through the Chime app. The product 'is the latest way Chime is helping to unlock financial progress for everyday Americans,' Madhu Muthukumar, chief product officer at Chime, said via email. 'Early feedback on Instant Loans has been overwhelmingly positive, with extremely high customer satisfaction. We believe this reflects our members' trust in Chime's transparent, helpful, and fair financial tools that meet their day-to-day needs,' he added. Chime has been testing the product for quite some time, and it takes seconds to get a loan, a Chime spokesperson said. The loan offering carries no fees for origination, prepayment, or late payment but comes with a fixed rate of $5 for every $100 borrowed, which can be paid back in three monthly installments of $35 for each $100 – roughly a 29.76% annual percentage rate. Since loans are disbursed in $100 increments, the minimum amount to apply for is $100, the spokesperson noted. Customers can opt-in for automated monthly repayments, which have been built to not exceed 10% of monthly cash inflows, the company said. Chime reports on-time payments to credit reporting agencies. 'As members take an Instant Loan, we clearly explain what they are signing up for, and when payments are due — with no hidden costs or compounding interest traps,' Muthukumar said. Founded in 2012 by Chris Britt and Ryan King, Chime touts itself as a digital banking alternative offering fee-free banking. The firm has around 7 million customers, who use its cards for $8 billion in monthly transactions, Forbes reported. According to a survey by Cornerstone Advisors, half of Chime customers consider the neobank their primary checking account provider. The survey compared this to fintechs like SoFi, MoneyLion, Cash App and Current, which typically see about 25% of their customers treating them as a primary banking or payment solution. Chime's instant loan offering follows the neobank's launch of a suite of products last year. In May, Chime unveiled MyPay, offering early access to up to $500 of customer's paycheck, including government benefits, without interest, credit checks, or mandatory fees. In August, the firm expanded its SpotMe feature, a fee-free overdraft service Chime launched in 2019. The new integration allows members to access up to $200 in overdraft coverage when using their credit builder Visa credit card. SpotMe surpassed $30 billion in transactions last year, according to the company. The Bancorp Bank is Chime's banking partner, providing instant loans. Chime also partners with Stride Bank to offer its other banking products. Chime has been exploring options for its initial public offering and had tapped Morgan Stanley for the process, Bloomberg reported in September, citing people familiar with the matter. In December, the publication reported the fintech submitted a confidential filing with the U.S. government for its IPO, aiming to go public this year. Chime declined to comment on its IPO status. Fintech competitors such as Dave have been eager to offer instant loans to give customers access to convenient financing. Dave promised its customers $500 in 5 minutes or less, a cash advance that customers can receive without credit checks, interest or late fees through its ExtraCash account. However, the Federal Trade Commission sued the Los Angeles-based firm, claiming Dave allegedly misled consumers and 'lured' them to its cash advance application, guaranteeing them up to $500 in loans, which they failed to receive. The FTC also noted that the online platform charged consumers who needed financial assistance with undisclosed fees and 'tips' without their consent.
