Lunar raises €210 million in Series D funding as it takes on Klarna

Karthik Subramanian

Lunar, the digital challenger bank from Denmark, has announced that it has raised €210 million in its Series D funding that was led by Heartland investment company along with other investors like Kinnevik and Tencent from China.

lunar

This heats up the payments and banking industry race in the Nordic region with consolidation happening in the industry and Lunar also setting itself up for stiff competition with Klarna, the other giant in the European region.

Ken Villum Klausen, founder, and CEO of Lunar said that,” 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. The investment underpins Lunar’s long-term vision of building a digital-first financial ecosystem for both private consumers and businesses.”

Investors and payment providers believe that the Nordic region is the next region in Europe that is set for huge growth in the coming years. This region has seen relatively less penetration of digital payments and financial services and hence it is believed that there is a lot of space to grow in this industry. That is why we are seeing a lot of investors showing interest in the companies dealing in this space in this region.

The bank currently has operations in Denmark, Norway, and Sweden and it is expected that the new funds would be used for expansion across the region and also to help with acquisitions along the way that would help its growth.

Last year, the company had raised €40 million in Series C funding towards the end of the year and had also entered the Pay Later business space which has been growing very strongly in recent months around the world and has been a hit with the millennials. This has placed it in direct competition with Klarna which is now focussing on the social e-commerce domain.

Neobanking is the latest buzzword in the banking circles as they look to cut costs in terms of physical branch spaces and bring all their operations online either via a website or through the mobile app. This sits well with the new millennial generation of users who spend most of their time online and do not have the time to walk into a bank branch. The old legacy banks have been grappling to make the transition into the digital world and those startups that build their services around the digital banking industry are seen as direct and strong challengers to the established legacy banks in this new digital playground.

  • Read this next

    Inside View

    Scalping or day trading?

    Among the many popular trading styles with both beginners and experienced traders are scalping, which allows you to extract small portions of profit from each price movement, and day trading, which aims to trade over a single day. In this article, you will learn what scalping and day trading are and their differences and peculiarities. Ultimately, you will learn what to look for to understand which trading style is right for you.

    Crypto Insider

    Unveiling Plasma Next: INTMAX’s Solution to Scale Ethereum with Stateless Layer

     INTMAX has launched Plasma Next on the mainnet α, a groundbreaking Layer 2 zkRollup, revealed by co-founder Leona Hioki at ETH Denver. This innovation offers scalability with constant costs per block, merging Plasma’s scalability goals with zkRollups’ security.

    Fintech

    Nuam selects Vermiculus for clearing system in Chile, Colombia, and Peru

    “We are proud to deliver a system that plays an integral role in the core of this historical merger, empowering one of Latin America’s most crucial markets with VeriClear’s state-of-the-art technology, together with our deep market expertise.”

    Retail FX

    Moomoo launches super app in Malaysia

    “As an investment platform connecting 21 million retail investors globally, we envision collaborating with exchanges, regulatory bodies, and partners in the visible future to become the gateway, connecting Malaysia’s investment products to global capital and investors.”

    Executive Moves

    FXPA elects Joe Hoffman as new Chair in its 10th anniversary

    “The opportunity to serve as Chair of the FXPA is truly an honor, and I am committed to upholding the exceptional work of a FXPA. Given the recent market fluctuations due to global tensions, inflationary pressures, shifts in monetary policy, as well as the outcome of the US election and the risk of recession, brings the potential for more FX volatility in 2024. I am dedicated to expanding the FXPA’s membership and I’m excited about collaborating with all members to echo the unified voice of the FX market.”

    Market News

    Eurozone Fights Stagnation Whilst Stock Indices Rally

    European stock markets are defying economic gloom as they continue to soar to all-time highs, showcasing resilience amidst broader economic challenges.

    Web3

    Lisk Partners with Indonesia’s Communications Ministry to Boost Web3 Startup Ecosystem

    Discover the strategic partnership between Lisk and the Indonesian Ministry of Communications and Informatics, aimed at propelling local Web3 startups to new heights through comprehensive support and education.

    Executive Moves

    Admirals appoints founder Alexander Tsikhilov as CEO

    “Striking the right balance between sourcing new talent and developing and harnessing the strength and capabilities of our current workforce, is key to achieving our vision.”

    Executive Moves

    GCEX appoints Ignacio Corral and Helen Man to UK operation

    GCEX has announced the appointment of Ignacio Corral and Helen Man to its UK FCA-regulated operation based in London as the firm further expands its global business on account of increasing demand for its digital prime brokerage services.

    <