Lunar Way, a Denmark-based digital bank backed by financial services firm Nykredit, has raised €26m ($28.6m) in a round led by venture capital fund Seed Capital, EU-Startups reported on Wednesday.
Founded in 2015, Lunar Way offers banking services to customers in the Nordics through a mobile app equipped with features including spending notifications, budgeting support and bill payments.
Having recently secured a European banking licence from the Danish Financial Supervisory Authority, the company now hopes to introduce additional services like loans, investments, insurance and multi-currency payment cards.
The capital will go toward product development and growth that will concentrate on the Nordic region and particularly Denmark, Sweden and Norway, markets where Lunar Way believes there is an opening for digital banking products.
Nykredit and Seed Capital joined multiple unnamed angel investors to help close Lunar Way’s $9.5m series A round in mid-2017, after the two investors had combined for the round’s initial $5.3m tranche in late 2016.
Seed Capital then led a $14.7m round for the company in February 2019 that included VC firm Greyhound Capital, investment firm Socii Capital and several unnamed private investors from the financial industry.
Lunar Way CEO Ken Villum Klausen said: “Unlike other fintechs that have chosen to expand vertically, Lunar Way’s approach is to go deep in the Nordics, building not just a supplement for users to have when travelling or as an add-on to their other banking solutions, but as a 100% digital, innovative and true alternative to traditional banks.”