Monzo reportedly eyeing merger with Nordic neobank Lunar
UK digital bank Monzo is in early stage talks to potentially acquire Nordic neobank Lunar, according to a Bloomberg report.
Monzo is reportedly looking to merge with Lunar
According to Bloomberg, Monzo is eyeing a European expansion push through the acquisition, and is also looking at other potential acquisition deals alongside Lunar.
Lunar raised €35 million in fresh funding this February in a bid to shorten its path towards profitability. It claims more than 650,000 customers across Denmark, Norway and Sweden.
In March 2022, Lunar had offered €132 million to acquire Norway’s Instabank, although the deal later fell through in September 2022. The neobank was unable to secure the additional capital required by the Norwegian FSA and Danish FSA in order to obtain the required regulatory approval of the acquisition, citing shifting economic and market conditions.
Founded in 2015, Monzo has around 7.5 million customers in the UK, but is yet to post a full-year profit.
However, according to its annual report for the year ending February 2023, its losses have decreased 2%, coming down to £116.3 million from £119 million the year prior, and the fintech achieved monthly profitability for the first time over the first two months of 2023.
