Lunar neo-bank raises $77M and launches a B2B platform

TL;DR Breakdown

•  Lunar neobank announces a $77 million investment round.
• After the launch, users are able to trade and cash out Bitcoin, Ethereum, Cardano, Polkadot, and Doge

One of the most high-end challenger banks, Lunar neobank, announced a $77 million investment round. Lunar also revealed two new services that further solidified its goal of being a one-stop super app for its customers. In addition, it’s launching a crypto trading platform and B2B payments for its small and medium commercial clients.

Lunar invests in the crypto sector

Neobanks are financial technology businesses that provide internet-only financial services without physical offices. They appeal to tech-savvy customers who don’t mind using a mobile app to handle most of their money management.

Neobanks don’t just use cutting-edge technology because it’s trendy. Neobanks frequently save money on banking expenses by eliminating physical branches and moving everything to the internet. These banks save money by lowering fees and offering more services to underbanked consumers.

Lunar has a full banking license, and it enables consumers to check into their accounts and make deposits. It also provides credit services such as buy now, pay later, stock, fund, and ETF investing for individuals. To top the list, customers can also get business accounts, loans, and financial management for small businesses.

The firm’s Series D investment of $275.5 million in July 2021 was its most recent financing round. Heartland led the round, backed by Kinnevik, Tencent, and IDC Ventures. Will Ferrell acted in a promotional video for the business as well.

In an interview with Ken Klausen, Lunar’s founder and CEO, he stated that the comedian (Will Ferrell) is famous in the Nordics because his comedic and live worldview fits well with Nordic popular culture, the wide demographic swathe that Lunar seeks.

According to a previous report, Lunar is in the middle of a rolling fundraising process. The Series E financing anticipates concluding in May 2022. Lunar has collected approximately $454.7 million in total, and prior investors include Seed Capital, Greyhound Capital, Socii Capital, and Chr. Augustinus Fabrikker.

The emergence of neo-banks in the crypto space

The talk of CBDCs and the creation of a fiat digital currency in numerous nations have likely piqued the interest of global neobanks, who are now looking at crypto as more people become aware of them. Many neobanks and financial systems adopt similar strategies as many major banks focus on cryptocurrency.

The company is exploding. When it initially raised the Series D, there were 325,000 subscribers. However, as it establishes roots in Denmark, Sweden, and Norway, this figure has increased to 500,000 people. Furthermore, it plans to bring its services to Finland before expanding across Europe.

At the launch, users will be able to trade and cash out Bitcoin, Ethereum, Cardano, Polkadot, and Doge. The firm announced that the money would be used to keep up the momentum as it adds cryptocurrency trading tools, a separate blockchain subsidiary, and explores Nordic M&A. In addition, it’s exploring how its customers could use both crypto and blockchain technology to improve its current offering to customers.

Following neobanks’ entry into cryptocurrency, today’s news is another indication that things are changing. Revolut has long offered crypto investment tools and is reportedly developing its currency. N26, a German bank, is expected to debut a bitcoin trading tool by collaborating with Bitpanda.