Danish neobank Lunar has successfully raised €35 million to support its growth and development as it continues to expand across the Nordic region and accelerate its path to profitability.
A press release from the bank indicates that the “vast majority” of existing shareholders participated in this funding round. Lunar previously raised 212 million DKK (approximately €28 million) in August 2022, which coincided with a more than 500% increase in income for the first half of that year.
Lunar’s plans to acquire Norwegian bank Instabank fell through in September last year. The funding from the August raise was deemed insufficient to meet the capital requirements set by the Norwegian Financial Supervisory Authority. In March 2022, Lunar had offered €132 million to acquire Instabank, aiming to strengthen its presence in Norway and gain access to the Finnish market.
Commenting on the recent €35 million raise, Lunar Group’s founder and CEO, Ken Villum Klausen, remarked: “The capital markets that we and other similar companies raise money in have changed completely, with earnings now becoming the key focus. Last year, we improved our product, attracted more customers, and significantly increased our revenue streams. We will continue to do so in 2023 and the years ahead because the market needs a serious challenger in the industry.”
He also expressed gratitude for the trust placed in them by shareholders and customers, stating, “They want to help us build a new financial ecosystem and deliver banking services in a whole new way. This proves the strength of the concept we offer to bank customers throughout the Nordic region, and we remain committed to this approach despite the current turmoil in the financial markets.”