Chime Financial’s $173 Million Acquisition of Salt Labs: A Step Towards IPO Ambitions
Chime Financial has acquired Salt Labs to enhance financial progress for everyday Americans. Both companies aim to empower employees by leveraging the Chime platform. Jason Lee, CEO of Salt Labs, will lead the new Chime Enterprise unit to deliver innovative employee benefits and financial wellness products. Salt Labs, known for its disruptive technologies for frontline workers, offers the Salt product, which functions like a savings account and has significantly improved financial security for users. The dedicated Salt team will continue their work under Chime, maintaining their commitment to employers and employees.
Chime Financial, a leading financial technology company, has announced its acquisition of Salt Labs, a startup founded by Jason Lee, who also co-founded the payroll service DailyPay. The deal, valued at up to $173 million, aims to enhance financial progress for everyday Americans and is expected to close later this week.
Salt Labs, known for its innovative approach to financial wellness and enterprise rewards for frontline workers, has developed a flagship product, Salt, which functions like a savings account. This product has significantly improved financial security for 91% of its users, allowing hourly workers to perceive and value their work more positively. Users save 59% of their earnings through Salt, compared to a negative 2% savings rate for consumers in the same income bracket.
Following the acquisition, roughly all of Salt Labs’ 25 employees will join Chime Financial, including Jason Lee. Lee will lead Chime Enterprise, a new business unit dedicated to delivering innovative employee benefits and financial wellness products to leading employers and their employees across America. Chime will provide an upfront payment of $14 million as part of the acquisition, according to sources familiar with the deal.
Chime and Salt Labs share a mission to unite everyday people to unlock their financial progress. This acquisition will enable employers to empower their employees to build financial security and enjoy unparalleled benefits and products accessed through the Chime platform.
Since its founding, Salt Labs has been at the forefront of creating disruptive technologies for frontline workers in the enterprise rewards and financial wellness space. The entire Salt Team will continue their work under Chime, maintaining their entrepreneurial, high-touch, and highly collaborative approach to serving the needs of employers and employees.
Chime Financial, with this strategic acquisition, is poised to expand its offerings and reinforce its commitment to improving financial security for workers across the United States. This move also comes as Chime is rumored to be preparing for a potential initial public offering (IPO) in the near future.
“We’re excited to continue to build for leading employers and their employees,” said Jason Lee. “Thank you for being a part of our story. Here’s to a future where financial progress is achievable and within reach for everyone.”
This acquisition underscores Chime Financial’s ongoing efforts to provide innovative financial solutions and support financial wellness for everyday Americans, marking a significant milestone in its growth trajectory.
