Danish neobank, Lunar, has raised €35 million to invest in and develop the business in order to continue Nordic expansion and expedite its path to profitability.
A press release from the bank states that the “vast majority” of existing shareholders contributed to the raise. Lunar’s last raise of 212 million DKK (approx. €28 million) in August 2022 came alongside a +500% increase in income during H1 2022.
The bank’s plans to acquire Norwegian Bank, Instabank, failed in September last year, due to the August raise proving insufficient to cover “capital needed to meet the capital requirements and obtain the approved from the Norwegian FSA.” Lunar had offered €132 million in March 2022 to purchase Instabank, in efforts to increase Lunar’s footprint in Norway and open the door to the Finnish market.
On today’s €35 million raise, founder and CEO of Lunar Group, Ken Villum Klausen, stated: "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 increased our revenue streams significantly. We will continue to
do so in 2023 and the years to come because the market needs a serious challenger in the industry."
"We are very humbled by the trust our shareholders and customers place in us. 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 this period of turmoil in the financial markets,” Villum Klausen continued.