Lunar, the Nordic opposition bank that began life as a personal finance manager app(PFM)but got a full banking license in 2019, has raised EUR40 million in Series C funding from existing investors.

The injection of capital follows a EUR20 million Series B divulged in April this year and comes on the back of Lunar presenting Pro paid-for subscriptions– similar to a variety of other opposition banks in Europe– personal customer loans, and the launch of business checking account in August.

The latter appears to have actually been an instant success, perhaps proof there is– like in the U.K.– pent up demand for more available banking for sole traders. Just months since introducing in Denmark, Lunar Business declares to have registered more than 50% of all freshly established sole trader businesses in the nation.

I’m also told that Lunar has seen “best-in-class” user engagement with users investing EUR1,100 monthly versus what the bank says is a EUR212 EU average for card deals. In general, the bank has 5,000 organization users and 200,000 personal users across Denmark, Sweden and Norway.

— and most noteworthy– after releasing its very first customer loaning products on its own balance sheet, Lunar has set its sights on the “buy now, pay later” market, for that reason theoretically trespassing on $10.65 billion valued Klarna, and Affirm in the U.S. which just filed to go public. Other giants in the BNPL space likewise include PayPal.

Lunar creator and CEO Ken Villum Klausen states the “schizophrenic” Nordic banking market is the reason the challenger is launching BNPL. “It’s the most successful banking landscape worldwide, however likewise the most defensive, with least competitors from the outdoors,” he states. “This suggests that the standard banking client is buying all their monetary products from their bank”.

It is within this context that Lunar’s BNPL items are developed as “post-purchase,” where Lunar will trigger its users after they have purchased something (not different to Curve’s planned credit offering). For example, if you were to buy a brand-new television, the app will ask if you want to split the purchase into instalments. “This does not need merchant arrangements etc, and will work on all deals both retail and e-commerce,” explains Klausen.

“We do not see Klarna as a direct competitor as they are not in the Nordic clearing system,” he includes. “For this reason, you can not pay your costs, get your wage and use it for daily banking. Klarna is huge in Sweden, however reasonably little in Denmark, Norway and Finland”.

In total, Lunar has raised EUR104 million from financiers consisting of Seed Capital, Greyhound Capital, Socii Capital and Chr. Augustinus Fabrikker. The challenger has offices in Aarhus, Copenhagen, Stockholm and Oslo, with a headcount of more than 180 employees. It prepares to launch its banking app in Finland in the first half of 2021.

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.