The round mostly saw participation from existing investors such as Tencent, Heartland, IDC Ventures, and Kinnevik. Lunar plans to use the funds to accelerate its path towards profitability as it expands in the Nordic region. According to altfi.com, the company has 500,000 retail customers and 15,000 business customers.
In March 2022, the neobank managed to raise EUR 70 million in an investment round, which it used to improve its crypto and payments offering while setting aside funds for potential acquisitions. Lunar officials cited by the same source revealed that, in 2022, they manage to significantly increase their revenue streams while improving their product and attracting more customers.
For individuals, Lunar offers an account with no sign-up fees, yearly card fees, or fees for paying bills. Users can also manage their money via the Lunar app, which offers an overview of the users’ finances and helps them to save up, budget, or invest. The company also offers a positive 1.25% interest on its free account.
For businesses, Lunar offers an account designed specifically for entrepreneurs with features such as automatic bookkeeping, automatic payments, business discounts, expense management and company cards.
In March 2022, Lunar has announced the launch of a solution that allows its customers to accept and track online payments. The new service was incorporated into the company’s business account and meets the needs of its growing ecommerce customer base. The fintech also acquired a Danish-based full-stack payment platform named Paylike back in 2021. The integration with Paylike allowed Lunar to further boost its customer base and offer clients a one-step checkout platform for ecommerce merchants and businesses.
In the same month, Lunar revealed plans to buy Instabank for EUR 135 million. Instabank's board has voted unanimously to approve the deal, as have shareholders representing 73% of the remaining share capital. Lunar officials expressed that the deal will significantly increase the company’s footprint in Norway.
In January 2022, Lunar has announced its switch to the cloud-native core banking Thought Machine platform for its banking engine Vault. At the time, company officials revealed that the switch will enable the company to migrate all its existing accounts and functionality while opening a path to building new products. Lunar raised EUR 210 million in 2021 to expand from its base in Denmark and continue growing, partly through acquisitions.
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