Lunar Way, a Denmark-based banking app developer backed by financial services firm Nykredit, has collected €13m ($14.7m) in a funding round led by venture capital fund Seed Capital, TechCrunch reported on Monday.
The round included VC firm Greyhound Capital, investment firm Socii Capital and several unnamed private investors from the financial industry.
Founded in 2015, Lunar Way has developed a free-to-use digital bank that enables users to manage their personal finances through a mobile app and pay for goods through a contactless card.
As a result of a recently obtained PISP (payment service initiation provider) payments licence from the European Union, Lunar Way’s users can connect to an existing bank account and control their finances through the company’s platform.
Proceeds from the funding will be used to expand across the Nordic region, with an additional round expected to take place later this year.
Lunar Way closed its series A round at $9.5m in May 2017 following commitments from Nykredit, Seed Capital and several unnamed angel investors. Nykredit and Seed Capital had initially backed the round’s first tranche in December 2016.
Ken Villum Klausen, Lunar Way’s founder and chief executive, told TechCrunch: “It has taken a few years to build our app to suit the different demands of the Nordic countries, but now we are a serious competitor to traditional banks.
“We are now welcoming more than 10,000 new users a month and counting, which is substantial considering the fact that the Nordics’ total addressable market is 27 million people.”