Lunar eyes accelerated digital banking roll-out following €210m Series D

Danish challenger bank Lunar has secured €210m from a Series D funding round led by Heartland.

The funding round – which Lunar claimed was the largest of its kind for a Nordic challenger bank – also saw participation from Kinnevik and Tencent.

Established in 2015, Lunar claims it is the only cloud-based digital banking platform to have been granted a banking license in the Nordics. The company said it now serves over 325,000 customers in the region and has locations in Copenhagen, Aarhus, Oslo and Stockholm.

The firm also mentioned that over the last year, its total customer base grew by more than 90% and the bank received applications from over half of the newly established Danish SMEs during 2021 – adding €130m in deposits in the last month.

According to Lunar, this funding will help the company fast track the rollout of its digital-first financial offering in all Nordic countries, as well as accelerate its strong momentum, grow its business offering and support potential future acquisitions.

Lunar has claimed it is building a ‘complete financial services’ offering for its customer base. Earlier this year, the company purchased Swedish consumer lending business Lendify to strengthen its position in the Nordics and expand its lending capabilities.

Lunar founder and CEO Ken Villum Klausen said, “We are at a true crossroads in the Nordics. Both private and business customers expect a more convenient, empathic and engaging alternative to traditional banks, lenders and payment service providers.

“We are beyond excited to welcome investors with such valuable experience to join our next stage of growth. It’s a massive step for both Lunar and Nordic banking customers. The investment underpins Lunar’s long-term vision of building a digital-first financial ecosystem for both private consumers and businesses.”

In October last year, Lunar raised a €40m Series C round and announced its plans to go into the buy now, pay later market.

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