Lunar is using the funds to grow its business customers and support the launch of new lending products.
Lunar, the Nordic digital challenger bank, has raised €46 million in fresh funding, with the funds geared towards growing its business customers and supporting the launch of a suite of new lending products.
Lunar, which has over one million users across the Nordics, has raised the funding from existing investors Heartland and Orbit Alliance and new investor 100A, a London-based fintech investor.
Lunar did not disclose a valuation following its new funding, when asked by Tech.eu. Lunar was last valued at $2.2 billion in 2022.
The latest funding round means that Lunar has raised €537m in total, according to Pitchbook. Ken Villum Klausen, founder and CEO of Lunar, said the funding would be used to grow its business customers, which currently stands at 40,000 users, in Denmark, Sweden and Norway.
On a target number for business customers by the end of 2026, he said: “I think we would be aiming for 100,000, that is one of the core ambitions for 2026.”
He said business customer growth was currently stronger in Sweden than in Denmark. He added: “We can see that our strategy is working. More users are choosing paid subscriptions, and we are seeing strong momentum in our business customer base, reaching 40,000 business users in January.”
The funding will also support the launch of a suite of lending products, including credit cards and overdrafts, in the second quarter of this year, said Villum Klausen. He said expansion would continue to focus on the Nordics, not beyond into wider Europe.
In 2022, Lunar launched its Lunar Block in-app crypto platform in 2022, allowing users to buy and sell crypto coins directly.
In October last year, Lunar secured a crypto licence under the EU’s MiCA regulation. Villum Klausen said crypto was “doing OK”.
Last year, Lunar was hit by a string of executive departures including its co-founder and CTO, as it looks to cut management costs and become profitable in the long term.
Peter Andreasen, Lunar’s co-founder and chief investment officer, and Kåre Kjelstrøm, the CTO (chief technology officer) of Lunar, have both left. The two executives are understood to have left in the past few weeks.