Danish fintech Lunar Way is continuing its expansion after securing a European banking licence and raising €26m ($28.9m).

In a new funding round, led by SEED Capital, the fintech received investment from both Greyhound Capital and Socii Capital.

Lunar Way hope to use this money in order to accelerate its growth in the Danish, Swedish and Norwegian markets.

Ken Villum Klausen, Lunar Way CEO, said: “The funding and banking licence is the preliminary culmination of years of hard work and dedication from the entire Lunar Way team.

“We have grown from a small startup to a fintech with close to 100 employees from Denmark, Sweden and Norway with users in all of Scandinavia – a market notoriously hard to penetrate.

“We’re the very first of our kind in the Nordics to get a banking licence. We’ve done all this in four years. That in itself is an accomplishment.”

This new funding round comes after the fintech raised €13m in February to expand its business in the Nordic region.

Klausen said: “The bank license will help us create similar marketplaces for our Swedish and Norwegian users faster. It will also enable us to build our own financial products.

“The plan going forward is to collaborate with those who offer the best financial solutions out there and tie the whole thing together in the Lunar Way app.”

Lunar Way places focus on Nordic region

The digital banking app was established in 2015 to simplify the banking experience for customers, and mainly targeted millennials.

Since then, it has placed focus on the Nordic region alone with no plan to emerge into the global market.

“Unlike other fintechs that have chosen to expand vertically, Lunar Way’s approach is to go deep in the Nordics,” said Klausen.

Lunar Way also struck a deal with Sweden’s largest mortgage provider last year, providing the back-end processing for its services.

It is available in Denmark, Sweden and Norway and there are currently plans to open a new office in Oslo.