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Chime ups its valuation to $5.8B after closing its latest funding round

Mobile bank Chime closed a series E funding round, which raised $500 million and quadrupled the company's valuation in less than a year at $5.8 billion, CNBC reported citing people with knowledge of the situation.

DST Global led the San Francisco-based challenger bank's funding round. The latest round's proceeds will be used to develop new products, open a Chicago-based office and double the firm's employee count by the end of 2020.

Chime increased its number of customer accounts to 6.5 million in December from 1 million a year ago by offering no-fee accounts, free overdrafts and early direct deposits for paychecks.