Danish digital bank Lunar receives €20m in fresh funding

Nordic challenger bank Lunar has added €20m to an already successful Series B funding round.

Lunar, which first began life as a personal finance management tool, has announced it has nearly doubled the €26m in Series B funding it announced in August 2019, now bringing the total disclosed amount to €46m.

The fundraising round was led by Seed Capital, an investment firm that specialises in early-round funding, with participation from Greyhound, Augustinus and Socii, who has previously invested in other fintechs namely Revolut.

As well as extending its funding round, Lunar also announced that Ole Mahrt, Monzo’s former head of product until 2019 will sit on the company’s board of directors. 

The other non-executive board seats are held by other veterans of the European fintech scene such as Tuva Palm, former chief technical officer at Nordnet Bank and consumer director at Klarna and chief marketing officer of Zoopla, Gary Bramall. 

Lunar offers a free and premium service but with both promises no hidden fees, a free account and card, fee-free payments and transfers and that any money held in the app is covered by the Danish Financial Supervisory Authority up to DKK750,000 (roughly £88,500). 

In a statement, the digital bank said: "Looking ahead Lunar will introduce new products and features in all Nordic markets and move forward with our promise of becoming a full alternative to traditional banks."

Since receiving its full European banking licence in August 2019, the app-only bank claims to have over 150,000 customers and employs 120 staff across Scandinavia.