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 three tiers: 1) Standard, 2) Premium, and 3) Pro. The standard package is offered free of charge, while Premium and Pro are priced at 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 two tiers: 1) Solo and 2) Grow, priced at DKK 2,450 and DKK 4,250 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 June 2023, the company had 750,000 customers, spanning Denmark, Sweden, and Norway.

Funding and financials

In February 2023, the company raised EUR 35 million (USD 38 million) in funding largely from existing investors. The company planned to utilize the funds to further develop the company’s products and expand its presence in the Nordic region. In addition, Lunar also received an undisclosed investment from American actor and producer Will Ferrel in February 2022.