Nordic Neobank Lunar Pulls $77M in Funding and Floats Crypto Trading

Nordic Neobank, Lunar has announced the raise of $77 million in Series D funding round with backings from Kinnevik, Tencent, and IDC Ventures amongst others. The funding round positions the startup at a $2 billion post-money valuation, sending Lunar into the unicorn’s list.

While the startup is notably conservative about naming its backers according to a report on the funding round by TechCrunch, it unveiled Will Ferrell as one of its angel investors. The Nordic region represents a highly digitized area, with banking services amongst the prominent areas that have been digitized. 

Lunar entered the ecosystem with over 95% of the Nordic population already enrolled with a digital banking services provider. Despite the apparent strain in its entry, Lunar has been able to secure a good market share, with the active users of its platform growing 325,000 customers from last July when the firm wrapped up the first tranche of this Series D round to over 500,000 today.

Motives Behind the Neobank Lunar’s Crypto Trading Platform

Lunar is on track to take this massive landmark to a new level and has launched a crypto trading service to help solve the major challenge that has generally kept crypto users bound. While as much as 50% of the top Nordic fintech startups typically offer some form of cryptocurrency or Bitcoin (BTC) trading, the avenues to withdraw funds in fiat is generally limited seeing most banks in the region do not support crypto trading as it is yet to be regulated with no room to cover the inherent risks for banks.

The launch of the Lunar crypto trading platform seeks to empower crypto owners to trade on its platform, creating an avenue to cash out their funds through the application, an innovative use case that is poised to boost the startup’s image amongst the crypto-savvy population.

Lunar is expanding at a very fast pace into other European countries with an established presence in Denmark, its base, Sweden and Norway. Seeing its broad prospects across the board, Lunar’s investors have seen quite a viable reason to go long with the startup as it seeks to push traditional banks out of business.

“The investment builds on our strategy of backing best-in-class businesses and management teams,” said Lise Kaae, the CEO of Heartland, in a statement when the first tranche was announced. “We look forward to supporting the team in developing next generation digital-first financial services in the Nordics and beyond.”