Nordic neobank Lunar has raised €35 million in new capital to invest in and develop the business and reach profitability earlier.
Lunar, which has more than 500,000 customers in Denmark, Norway, and Sweden, said that the “vast majority” of existing shareholders contributed to the capital injection.
Founder and chief executive officer of Lunar Group, Ken Villum Klausen, (pictured) said: “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.”
He added: “Backed by the new capital, we can continue our expansion in the Nordic region, offer new and better digital banking solutions to our customers, and expand our position as the leading challenger in the Nordic banking market.”
In September 2022, Lunar raised DKK212 million (€28.5 million) in new growth capital.
At the time, the neobank said the money would be used to continue its “growth journey”, but with an increased focus on earnings.
In the same month, Lunar announced it had not obtained the regulatory approval required to acquire Norwegian Bank Instabank.
The Norwegian Financial Supervisory Authority had, earlier in the year, informed Lunar that extra capital requirements would be needed to approve the acquisition.
Villum Klausen said: “Unfortunately, the market conditions have changed drastically, and they do not allow Lunar to obtain the regulatory approval needed to complete the acquisition of Instabank.”