Lunar

Based in Denmark, Lunar offers banking products to individuals and businesses via a mobile app. The company provides its customers with the option of using its app as a standalone tool and also allows customers to link other bank accounts to the app. The company initially started out as a Personal Finance Management (PFM) app in 2016 but has since rolled out other banking products following the receipt of its own banking license in 2019. The app offers bank accounts with checking and savings facilities, which include debit cards, at no annual fees. The app also facilitates payments and instant money transfers. In addition, the app enables customers to link their Lunar cards with digital wallets such as Apple Pay and Google Pay.

The app’s PFM tools provide budgetary features, which categorize spending habits and provide real-time updates on an individual’s actual financial position in comparison to their budget. In addition, it provides a personalized savings feature whereby customers can create separate savings categories and track their progress in terms of how much they need to save to achieve specific goals. Moreover, the app provides automated savings facilities. For instance, the app is able to automatically round up amounts spent by cards and save the difference. In addition, the app provides investment portfolios in which customers are able to invest. In March 2022, it launched a crypto trading platform.

The company offers its products under four tiers: 1) Light, 2) Standard, 3) Plus, and 4) Unlimited. The Light package is offered free of charge, while Standard, Plus, and Unlimited are priced at DKK 29 per month, DKK 69 per month, and DKK 119 per month, respectively. Additional features offered under the paid packages include additional debit (physical and virtual) cards, an additional number of accounts, and insurance products.

Since launching, the company has expanded its product range to accommodate the needs of different segments. As such, the company introduced a bank account for teenagers (15-17) in June 2020, following which it entered the B2B space by launching business banking accounts for SMEs in August 2020, by launching business bank accounts.

Business accounts are offered under three tiers: 1) Simple, 2) Essential, and 3) Limitless, priced at DKK 2,890, DKK 3,890, and DKK 5,890 per year, respectively. The company provides debit cards to all employees included under a business account. Its B2B platform was expanded to also include a B2B payments solution for its small and medium-sized business clientele in March 2022.

In March 2022, the company announced the acquisition of Instabank (a Norwegian digital bank) for EUR 132 million (approximately USD 146 million). Through the acquisition, the company aimed to expand its reach in Norway and enter the Finnish market.

Key customers and partnerships

In June 2023, Lunar partnered with a B2B digital lender, Froda, to offer its SME customers access to loans through the latter’s embedded lending platform built on Visa’s infrastructure.

As of April 2024, the company had 850,000 customers, spanning Denmark, Sweden, and Norway.

Funding and financials

In May 2024, the company secured EUR 24.1 million (~USD 26.1 million) in funding from its existing investors. The company had earmarked the funds to broaden its services across the Nordic countries and to expand its services in Sweden to a full-service bank.

In 2023, the company’s net interest and fee income reached DKK 428 million (~USD 62.2 million), an 83.6% YoY increase. The company’s net loss decreased to DKK 410.9 million (~USD 59.7 million) compared with a loss of DKK 1.488 billion (~ USD 216.3 million) in the prior year.