Danish challenger lender Lunar has agreed to purchase Swedish digital bank Lendify to enhance its consumer credit proposition.
Lendify has around 40,000 active savings and loan customers and a loan book worth nearly €300m. The firm has secured €90m in equity funding since its inception in 2014.
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By GlobalDataIt provides unsecured loans through balance sheet financing as well as peer-to-peer loans.
The business will run as an independent platform upon the acquisition. It will provide loans under both the Lendify and Lunar brands.
As part of the transaction, Lunar will absorb all Lendify investors as well as employees.
The deal, whose financial terms were not revealed, is subject to regulatory nod. It is expected to complete in the middle of next month.
Lunar founder and CEO Ken Villum Klausen said: “We have a large invested capital and the purchase of Lendify gives us the opportunity to turn this into lending and thus accelerate our Nordic growth.
“The acquisition of Lendify is a “perfect match” for us given the company’s history, culture and future vision.”
Last October, Lunar raised €40m in a Series C funding round to bolster its business banking and consumer credit offerings.
Lunar was established in 2015 in Denmark, with its app available in Sweden and Norway as well. The firm has more than 250,000 private users.
Lendify chairman of the board Elisabet Lundgren said that the two companies complement each other and as together will be well positioned for growth.
“Through the acquisition, Lunar will have access to Lendify’s scalable technology platform and credit rating process at the forefront. I would like to take this opportunity to thank everyone who has been involved in this transaction,” Lundgren further noted.
Recently, Avant acquired fintech company Zero Financial, including its neobank unit Level as well as other banking app assets.
