US-based digital bank Chime has raised $200m in a Series D financing round led by venture capital firm DST Global.

The latest funding round values the financial technology company at $1.5bn.

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Chime funding round

The funding round was joined by new investors including General Atlantic, Coatue, ICONIQ Capital and Dragoneer Investment Group.

Chime’s existing investors Forerunner Ventures, Cathay Innovation, Menlo Ventures also participated in the latest funding round.

Chime CEO Chris Britt told Reuters that the new funding will be utilised to launch new products in credit building and short-term lending.

Britt also said that the company plans to increase its employee strength from 120 to 200 by the end of this year.

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Currently, Chime offers checking and savings accounts services. It also offers a no-fee debit card to the customers. Additionally, it does not charge fees for transfers, foreign transactions and monthly services.

The company revealed that it has more than three million bank accounts. All the accounts are protected by the Federal Deposit Insurance (FDIC) under a partnership with local lender The Bancorp Bank.

Recently, several digital-only banks have started operations in the US and globally in a bid to provide convenient and cheaper banking services through smartphones.

Some conventional banking institutions have also established their online units to compete in this growing domain.

Other online banks operating in the US include Varo Money and Ally Bank.