The fresh cash will be used to bolster Lunar’s business banking and consumer credit offerings.
Cloud-based Nordic challenger bank Lunar has closed a €40m (~£36m) Series C funding round.
The fresh cash comes from existing investors, such as Chr. Augustinus Fabrikker extending its equity already held in Lunar and private investors Alan Howard and Klaus Østergaard from Brevan Howard Asset Management.
Lunar says the Series C was raised off the back of it launching its Pro subscription, which costs DK119 per month (~£14.50), introducing personal consumer loans and tapping into the business banking market with its new business account all in August 2020.
Following the fresh injection of capital, Lunar says it will use the cash to expand its business banking offering and its consumer credit products.
Ken Villum Klausen, founder and CEO of 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.”
Lunar has had a strong 2020 so far, with the bank launching new products and rapidly growing its customer base.
Since launching in 2015 in Denmark, Lunar has amassed over 200,000 personal customers and 5,000 business users across Denmark, Sweden and Norway.
To date, the digital challenger bank has raised €104m (~£95m) and remains the only cloud-based digital banking platform to have secured a banking licence in the Nordics.
In April of this year, Lunar teamed up with Danish bank Saxo to build a simplified trading platform for beginners, no doubt seeing a demand for an investment service thanks to the pandemic-related trading boom.
The digital bank also launched a teen account, aimed at teenagers aged between 15-17, to help teach them better money management and help teens gain financial independence from their parents.