US-based mobile banking startup Jiko has received $40m in a Series A funding round to launch its platform and expand its presence.
The funding round was co-led by Upfront Ventures and Wafra.
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Other investors such as Radicle Impact, NYCA Partners, Anthem Ventures also joined the funding round along with existing investors.
The latest infusion brings the total amount raised by Jiko to date to $47.7m, since its inception.
The startup will use the fresh funds in building a mobile bank and launching the platform for the general public.
It will launch a fluid mobile app, which was created after Mid-Central National Bank acquisition last month.
There are 50,000 people already in the waitlist, and Jiko is planning to charge $9.99 monthly or $99 yearly for its product.
However, as part of beta testing, Jiko already began onboarding, and so far, it has about 1,500 subscribers.
Jiko said that the app will be launched in the US first, and then across Europe and possibly Asia.
Jiko CEO and co-founder Stephane Lintner said: “We are now ready to onboard customers. Our product is designed to keep your money safe and fully invested at all times.”
“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.
“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.”
Founded in 2016, Jiko is a decentralised full-stack bank. It hires 24 people, of which more than a dozen are software engineers.
Jiko does not hold, invest or lend the customer deposits.
They are automatically invested in liquid US government-backed securities like short-term Treasury bills (T-bills), offering 100% yield.
Lintner added that Jiko is also a card processor.
