The Digital Treasury Revolution: How Jiko Encashes 40 Million Dollars in Series B Funding to Secure Corporate Cash

In the fast-evolving world of financial technology, innovative solutions continue to emerge, reshaping how businesses manage their capital reserves. The latest development in this sphere comes from Jiko, a fintech firm that has recently secured a substantial investment to revolutionise corporate cash management.

Jiko's £40 million series b funding success

Jiko has successfully bagged £40 million in Series B funding, marking a significant milestone in the company's growth journey. This latest capital injection brings their total funding to approximately £87.7 million since their establishment in 2016, demonstrating strong investor confidence in their business model and future prospects.

Key strategic investors including Goldman Sachs

The funding round was spearheaded by Red River West, with participation from several notable financial institutions. The involvement of established players in the investment banking sector signals robust support for Jiko's innovative approach to corporate finance. During the private beta testing phase, Jiko's product reportedly generated what Red River West described as 'incredible traction', validating the market demand for their services.

The significance of the funding for corporate finance solutions

This substantial investment will enable Jiko to accelerate the development and deployment of their revolutionary cash management platform. The company aims to transform the future of liquid money storage, addressing a critical need in the corporate sector. With inflation concerns and supply chain challenges creating financial uncertainty, businesses increasingly require nimble and efficient cash management tools. Jiko's solution arrives at a particularly opportune moment, offering companies greater flexibility in how they store and utilise their capital reserves.

Transforming corporate cash management with treasury bills

At the heart of Jiko's offering is a novel approach to corporate cash management that leverages Treasury bills as a storage mechanism for business funds. This represents a significant departure from traditional banking models where corporate cash typically sits in low-interest accounts.

Understanding Treasury bills as a low-risk investment option

Treasury bills, commonly referred to as T-bills, represent one of the safest investment vehicles available in the market. These government securities are backed by the full faith and credit of the issuing government, making them virtually risk-free. For businesses looking to preserve capital while earning some return, T-bills offer an attractive alternative to conventional bank deposits. Jiko has cleverly positioned its platform around these secure instruments, creating what they call 'spendable T-bills' that combine safety with accessibility.

How Jiko enables direct investment in government securities

Jiko's Money Storage solution enables businesses to place their cash reserves directly into Treasury bills while maintaining on-demand liquidity. This arrangement is facilitated through a partnership with BNY Mellon, where client funds are securely held. The high-yielding nature of these T-bills compared to traditional corporate accounts offers businesses a more productive use of their idle cash. Furthermore, Jiko's platform will soon enable 24/7 money movement across the Jiko Network, providing unprecedented access and control over corporate funds.

A modern alternative to traditional banking models

Jiko represents a significant evolution in financial services, bridging the gap between traditional banking and investment management in a seamless digital environment.

Jiko's innovative approach to financial technology

What sets Jiko apart in the crowded fintech landscape is their unique regulatory position. The company operates with both a bank charter and broker-dealer status, a rare combination that provides them with distinct advantages over competitors. This dual status enables Jiko to offer services that traditional banks and standalone fintech firms cannot match. Originally launched as a mobile bank targeting consumers, Jiko has strategically pivoted towards corporate money storage, identifying a more substantial market opportunity in serving businesses rather than individuals.

Creating safer avenues for business capital preservation

The security aspects of Jiko's platform deserve particular attention. By enabling direct investment in government securities, Jiko offers businesses a level of capital protection that exceeds what's available through conventional banking channels. Their unique structure allows corporate clients to benefit from the safety of Treasury bills while maintaining the flexibility to access funds as needed. This combination of security and liquidity addresses a longstanding challenge in corporate finance, where businesses often had to choose between accessibility and yield.

Future growth and market impact

With fresh capital now secured, Jiko stands poised to expand its footprint in the corporate finance sector and potentially reshape how businesses approach cash management.

Expansion plans for Jiko's investment platform

The newly secured funding will fuel further development of the Jiko platform, with particular emphasis on enhancing the functionality and reach of their Money Storage solution. The company appears focused on scaling its technology infrastructure to support broader adoption among corporate clients. By offering on-demand liquidity combined with the superior yields of Treasury bills, Jiko is positioning itself at the intersection of banking, investment, and technology. This convergence represents a promising frontier in financial services innovation.

Meeting the needs of institutional investors seeking stability

Jiko's solution arrives at a time when institutional investors are increasingly searching for stable, liquid investment options. Market volatility and economic uncertainty have heightened the appeal of government securities, particularly among corporate treasurers responsible for safeguarding company reserves. By streamlining access to T-bills and adding a layer of technological convenience, Jiko addresses a growing demand for financial stability without sacrificing accessibility. The company's focus on creating an efficient bridge between corporate cash and government securities could well establish a new standard in treasury management practices across the business world.

Technical innovation behind jiko's money storage solution

Jiko, a US-based fintech firm, has secured a substantial £40 million in Series B funding led by Red River West, marking a significant milestone in its journey to revolutionise corporate cash management. Having previously raised £47.7 million through Series A and seed funding rounds, Jiko has now amassed a total of £87.7 million since its inception in 2016. The fresh capital will propel the company's innovative approach to providing businesses with a secure method of storing their cash in Treasury bills, offering a compelling alternative to conventional banking solutions.

At its core, Jiko's offering represents a radical shift from traditional cash management. The company's Money Storage solution enables businesses to store funds directly in high-yielding Treasury bills, providing them with both security and returns on otherwise idle capital. What makes this proposition particularly attractive is that these T-bills remain liquid, allowing firms to access their money when needed whilst still benefiting from investment returns. This approach has shown 'incredible traction' during its private beta phase, according to Red River West, highlighting the strong market demand for innovative cash management solutions in today's economic landscape.

The Jiko Network: Broker-dealer infrastructure with bank charter capabilities

What truly sets Jiko apart in the fintech landscape is its unique regulatory positioning. The firm operates with both a bank charter and broker-dealer status, creating a distinctive infrastructure that provides enhanced security and operational capabilities compared to other fintech organisations. This dual-status framework, known as the Jiko Network, forms the backbone of their money storage solution and allows the company to bridge traditional banking services with modern investment capabilities.

Originally launched as a mobile bank for consumers, Jiko has strategically pivoted towards corporate money storage, leveraging its regulatory advantages to serve businesses more effectively. The bank charter enables Jiko to provide banking services whilst the broker-dealer status allows direct investment in securities. This combination creates a robust framework that addresses the cash management needs of companies navigating inflation and supply chain challenges. Through this innovative structure, Jiko helps firms with essential banking and financial activities whilst maintaining the agility needed in today's fast-moving business environment.

Delivering 24/7 money movement and on-demand liquidity through spendable T-bills

Jiko's platform introduces the concept of 'spendable T-bills', which represents a significant leap forward in cash management technology. Through partnership with BNY Mellon, one of the world's largest custodian banks, Jiko ensures that client funds are securely held whilst being invested in Treasury bills. This arrangement delivers the safety associated with T-bills alongside the accessibility businesses require for their operational cash.

A standout feature of the Jiko Money Storage solution is its ability to facilitate 24/7 money movement across the Jiko Network. This always-on functionality addresses a critical pain point for businesses that often face restrictions on fund transfers outside of banking hours. By combining on-demand liquidity with round-the-clock money movement capabilities, Jiko is transforming how companies manage their cash reserves. The platform enables businesses to make their capital work harder through T-bill investments whilst maintaining the flexibility to access funds when needed, creating an optimal balance between yield and accessibility that traditional banking struggles to match.