Lunar, a Danish digital banking startup, has raised $200 million in a funding round led by Google's venture capital arm GV, bringing its total funding to over $350 million. The mobile-first platform offers banking services across Denmark, Sweden and Norway with features including real-time transaction alerts, automated savings and instant payments. The investment reflects confidence in Lunar's ability to challenge traditional European banks with its streamlined user experience. The startup provides full current accounts with IBAN, debit cards and automated expense categorisation, all accessible through a smartphone app. Lunar plans to expand into new European markets, potentially Germany or the Netherlands, and develop additional features including AI-driven financial advice and multi-currency accounts. The company is also exploring banking-as-a-service solutions for small businesses and other startups.

Lunar, the Nordic digital challenger bank, has raised €46 million from existing investors Heartland and Orbit Alliance, plus new backer 100A. The funding will support growth of its business customer base and the launch of lending products including credit cards and overdrafts in the second quarter. The company, which has over one million users across the Nordics, aims to grow its business customer base from 40,000 to 100,000 by the end of 2026. Founder and CEO Ken Villum Klausen said business customer growth is currently stronger in Sweden than Denmark. Lunar has now raised €537 million in total. The company was last valued at $2.2 billion in 2022, though it did not disclose its current valuation. Expansion will continue to focus on the Nordics rather than wider Europe.