The Nordic fintech company Lunar Group continues its growth journey in the Nordic markets in the first half of 2022.
Net interest and fee income grew by 513% to 89.38 million DKK from 14.57 million DKK in the first part of 2021. In the same time Lunar has gained over 200,000 new customers.
"We are satisfied with the development in Lunar, as we are experiencing a significant increase in income and new customers. We are now in a completely different market with high inflation and rising interest rates. It sets new requirements for scale-up companies like Lunar to increase revenue faster. On that background, we are satisfied with the company's results," says Ken Villum Klausen, founder and CEO of Lunar.
Although Lunar is increasing revenue, the company is still following the growth plan.
Therefore, as expected, the total result for the first part of 2022 is -486.7 million DKK after taxes.
The result is expected because Lunar invests in growing the company.
It is especially Lunar's expenses for employees and administration that increase, as the number of employees has increased by more than 200 compared to the first half of 2021.
The expenses increased to 496.7 million DKK from 159.5 million DKK in the period.
Raising growth capital in a new market
It also appears in the report that in September 2022 Lunar raised 212 million DKK in new growth capital. The money will be used to continue Lunar's growth journey, but with an increased focus on earnings.
The capital markets have changed significantly as a result of high inflation and interest rate increases from the central banks. The new conditions on the capital markets mean that investors have new requirements to scale-up companies' earnings.
"We are humbled by the trust that our investors have in Lunar - especially when you look at the capital market that has turned upside down in a short time.
We are satisfied with raising more than 200 million DKK in a very difficult market,”
"We have an increased focus on getting our growth over recent years to be reflected faster in our earnings. We will continue with our Nordic expansion and develop new solutions that provide a better digital banking experience for both companies and private customers", says Ken Villum Klausen.
Lunar Group has more than 500,000 customers in Denmark, Norway and Sweden, who are serviced by more than 600 employees in the company.