Monzo in talks for potential acquisition of nordic lender

Monzo is reportedly in discussions regarding the potential acquisition of Lunar Group, a Nordic lender, according to a reliable source cited by Reuters.

Bloomberg News earlier reported on these talks, indicating the digital bank’s exploration of various potential targets to facilitate its expansion in Europe.

As digital finance firms face challenges in raising new funds due to rate hikes and investor caution, the industry expects a surge in deal-making this year. Monzo, with its substantial customer base of 7.4 million, aims to bolster its market presence and address its historical inability to achieve a full-year profit since its launch in 2015, unlike certain competitors like Starling Bank.

Meanwhile, Lunar Group, a digital bank based in Denmark, has successfully established a customer base of 650,000 across Sweden, Norway, and its domestic market. In February, the company raised €35 million ($38.56 million) in funding, as publicly disclosed on its website. Both Monzo and Lunar Group have chosen not to provide any comments on the ongoing discussions.