Jiko, a neobank that in September became the first fintech startup to acquire a nationally regulated US bank

new.blicio.us Follow Oct 29, 2020 · 1 min read
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Mobile banking startup Jiko proclaimed that it’s raised $40 million in an initial Series A round of funding.

Upfront Ventures and Wafra Inc. co-led the financing, that additionally enclosed participation from complex body part Impact, NYCA Partners and every one existing investors. The round brings Jiko’s total equity raised to $47.7 million – additionally to $7 million in debt – since inception, in keeping with the company.

This is that the second time Jiko has created headlines in recent months. In early September, FinLedger reportable on the startup’s purchase of Mid-Central full service bank in Wadena, Minn.

Both the Fed and workplace of the controller of the Currency and therefore the Fed Bank of point of entry approved the transaction. however it had been a process. The deal came when 3 years of “rigorous” R&D, testing and auditing, in keeping with Jiko.

The purchase marked the primary time a fintech company completed the acquisition of a nationally-regulated U.S. bank. At the time, Jiko same its arrange was to roll out its platform at scale to the final public.

And this new funding can facilitate it just do that, according to business executive and co-founder Stephane Lintner. It already partially helped Jiko purchase the bank moreover as build the engine that powers Jiko’s full technology stack and money infrastructure.

“A fair amount [of the Series A] went into the proceeds for the bank, but there is some money left to grow the business, launch our consumer product and hopefully turn into a profitable enterprise soon,” Lintner told FinLedger. “There was a lot of regulatory scrutiny and so the money was in escrow for a while as regulators examined our acquisition. Everyone had enough patience to stick it out.”

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