Denmark’s Neobank Lunar has raised 35 million euros to invest and grow the business in order to further expand in Northern Europe and accelerate the path to profitability.

A bank press release said the “vast majority” of existing shareholders contributed to the increase. Lunar’s most recent fundraising was 212 million DKK (about 28 million euros) in August 2022, accompanied by a +500% revenue increase in the first half of 2022.

The bank’s plan to acquire Norwegian bank, Instabank, failed last September as the August pay rise proved insufficient to cover the “capital needed to meet the capital requirements and get Norwegian FSA approved”. Lunar offered 132 million euros in March 2022 to buy Instabank, with the aim of increasing Lunar’s footprint in Norway and opening the door to the Finnish market.

“The capital markets that we and other similar companies raise money in have changed completely, with earnings now becoming the key focus. Last year we improved our product, attracted more customers, and increased our revenue streams significantly. We will continue to do so in 2023 and the years to come because the market needs a serious challenger in the industry.”

“We are very humbled by the trust our shareholders and customers place in us. They want to help us build a new financial ecosystem and deliver banking services in a whole new way. This proves the strength of the concept we offer to bank customers throughout the Nordic region and we remain committed to this approach despite this period of turmoil in the financial markets,”

founder and CEO of Lunar Group, Ken Villum Klausen.