Nordic Banking Challenger Lunar Raises €40M Series C fund

Lunar, the Nordic challenger bank that began as a Personal Finance Manager (PFM) app but obtained a full banking license in 2019, has raised €40 million Series C funding held in October 2020. The investment came from existing investors like Chr. Augustinus Fabrikker and private investors Alan Howard and Klaus Østergaard from Brevan Howard Asset Management.

This funding round follows a €20 million Series B round announced in April this year. It has raised €104 million in total funding to date, from investors like Seed Capital, Greyhound Capital, Socii Capital, and Chr. Augustinus Fabrikker.

Lunar says it will use the funding to develop and expand its business banking offering and its consumer credit products and services. In the coming period, it plans to activate multi-banking features and enable payments across Denmark, Sweden and Norway for its customers. Users will be able to view and also transfer money between accounts, as well as pay bills from accounts in other banks, all in one app.

Lunar has also set sights on the flourishing buy now and pay later market, with a service that will offer customers the capacity to split payments into monthly instalments after any purchase. 

The banking group offers free accounts and a subscription-based service called Lunar Premium. It has recently announced the launch of its banking accounts specifically for teenagers aged between 15-17 and it remains the only cloud-based digital banking platform to have acquired a banking licence in the Nordics. 

In April of this year, Lunar partnered with Danish bank Saxo to build a made easy trading platform for beginners, probably looking at the demand for investment services with the pandemic-related trading boom. 

What the founder has to say

Ken Villum Klausen, founder and CEO at Lunar said, “Now more than ever people need to manage both their business and personal finances conveniently and with tools to make the most of their money. That is why we are building one app that will break up the monopoly-like Nordic banking infrastructure.” 

“Our focus is to roll out full personal and business banking operations in all Nordic countries and strive towards profitability in one of the world’s most profitable banking markets,” he added.

About Lunar

Lunar was launched in Denmark in the year 2015 and was founded by Ken Villum Klausen. Lunar has accumulated over 200,000 personal customers and 5,000 business users across Denmark, Sweden and Norway and it plans to expand into the fourth major Scandinavian economy, Finland in the coming year.

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