Jul 12, 2021

3 min read

Lunar takes giant leap in rolling out digital-first banking in the Nordics: Raises EUR 210 Million Series D

Lunar cements its position as the leading pan-Nordic challenger bank and raises EUR 210 million in Series D equity funding. The investment round, which is the biggest of its kind from a Nordic challenger bank, was led by HEARTLAND alongside Kinnevik and Tencent. The new funding will fast track the rollout of its consumer-centric digital first financial offering in all Nordic countries.

Lunar, the leading Nordic challenger bank, announces a EUR 210 million series D funding round led by family-owned investment company HEARTLAND. Other investors included Kinnevik, one of Europe’s leading growth investors, and Tencent, a leading China-based technology company.

Lunar is the only cloud-based digital banking platform to have been granted a banking license in the Nordics and is among Europe’s fastest-growing banks.

The new investment was secured following a rapid acceleration in growth from both private and business customers. Lunar now serves more than 325,000 customers across the Nordics.

In the last year, Lunar’s total customer base grew by more than 90% and the bank received applications from more than half of newly established Danish SMEs in 2021. During the last month Lunar has further added EUR 130 million in deposits.

The capital from the Series D funding round will enable Lunar to further invest in its Nordic expansion, especially to accelerate its strong momentum and grow its business offering as well as anticipated M&A.

Lunar is building a complete financial services offering for its Nordic customer base. In April 2021, Lunar acquired Swedish consumer lending and peer-to-peer savings platform Lendify to strengthen its position across Nordic markets and expand its capabilities in lending.

Ken Villum Klausen, founder and CEO of Lunar, said: ‘’We are at a true crossroads in the Nordics. Both private and business customers expect a more convenient, empathic and engaging alternative to traditional banks, lenders and payment service providers.’’ and: ‘’We are beyond excited to welcome investors with such valuable experience to join our next stage of growth. It’s a massive step for both Lunar and Nordic banking customers. The investment underpins Lunar’s long term vision of building a digital-first financial ecosystem for both private consumers and businesses.’’

Lars Andersen, General Partner at Seed Capital, said: ‘’I still remember my first meeting with Ken back in 2015, and it is amazing to see how far Ken and the entire Lunar team have come in just 6 years — now reaching unicorn status. The Lunar story is a great example of showing courage and execution, and not least that it pays off to challenge status quo in conservative industries. At Seed Capital we are super proud to have been a part of this journey from the beginning as the first VC, and thrilled to welcome such valuable investors on board’’

Lise Kaae, CEO of HEARTLAND, said: ‘’HEARTLAND is pleased to be welcomed as an investor in Lunar. The investment builds on our strategy of backing best-in-class businesses and management teams. We look forward to supporting the team in developing next generation digital-first financial services in the Nordics and beyond.’’

Andreas Bernström, Senior Investment Director at Kinnevik, said: ’’Kinnevik has always backed digital businesses that challenge the incumbents. We are hence very excited to add Lunar to our portfolio — a tech company at heart with a bold mindset focused on reimagining the everyday banking experience for the Nordic consumers and SMEs.’’

The round diversifies Lunar’s slate of shareholders to include some of the world’s most notable investors in the financial technology space. Alongside the lead investors, IDC Ventures, Fuel Ventures, MW&L Capital Partners and Peter Mühlmann, the Founder and CEO of Trustpilot, also invested. They will join current investors such as SEED Capital, Chr. Augustinus Fabrikker, Socii Capital and Greyhound Capital.