Jiko raises $40 million for its challenger bank

Jiko, a Berkeley-based financial technology or “fintech” firm, has raised $40 million in venture capital funding in a bid to take on Wall Street’s retail arm. The cash injection, led by Upfront Ventures and investment firm Wafra, follows an initial $7 million debt financing round, putting the company’s total raise at $47 million to date.

Founded four years ago by Stephane Lintner, a former Goldman Sachs trader, Jiko set out first to acquire an existing bank before debuting a product. Investors’ funds were held in escrow for two years while Jiko pursued purchasing 63-year-old Mid-Central National Bank, based in Minnesota, a deal it consummated in September.

Read more: Fortune