TL;DR Breakdown
- Lunar announces a $77 million investment round.
- After the launch, users will be able to trade and cash out Bitcoin, Ethereum, Cardano, Polkadot, and Doge.
One of the most high-end challenger banks, Lunar, announced a $77 million investment round. Lunar also revealed two new services to advance its vision to become a one-stop super app for its customers. In addition, it will also launch B2B payments and a crypto trading platform for its small and medium-scale 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 economic activities.
Neobanks don’t just favor cutting-edge technology because it is trendy. They cut costs while providing banking services by eliminating physical branches and moving their operations online. It allows these banks to offer lower fees and 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, stocks, funds, and ETFs investment for individuals. Customers can also get business accounts, loans, and financial management for small businesses.
The firm’s Series D investment raised $275.5 million in July 2021 and is its most recent financing round. Heartland led the round, leading Kinnevik, Tencent, and IDC Ventures. Will Ferrell also appeared in a promotional video for the business.
In an interview with Ken Klausen, Lunar’s founder and CEO, he stated that the comedian (Will Ferrell) is famous in the Nordic nations because his comedy and worldview resonates with Nordic popular culture, which is the same demography that Lunar serves.
According to a previous report, Lunar is in the middle of a rolling fundraising process. The Series E financing is expected to close in May 2022. Lunar has generated approximately $454.7 million from investors such as 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 on cryptocurrency as many major banks.
The company is growing rapidly. When it initially opened 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 expand its services into Finland before spreading across Europe.
Upon launch, users will be able to trade and cash out Bitcoin, Ethereum, Cardano, Polkadot, and Doge. The firm announced that the money would be dedicated to maintaining momentum while it adds cryptocurrency trading tools, a separate blockchain subsidiary, and explores Nordic M&A. It is also exploring offering both crypto and blockchain technology to its customers to improve its current line of services.
Following neobanks’ entry into the crypto space, 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 in collaboration with Bitpanda.
