Lendify acquired by Lunar
After 7 years Lendify is being acquired by Danish neobank Lunar. This is a big day for both Lendify and Vidici. We have been investors and partners from the start, we have worked on the board, with the administration, with the operation and through the regulatory challenges that comes with running a regulated FinTech company. We learned a lot from starting and scaling a FinTech company within a regulated space from the journey. Starting off as a peer-to-peer lender with the goal to create a new popular asset class for savings in Sweden, building an in-house platform and recruiting great talent they became an efficient credit facility and could evolve in to a marketplace for loans that today employs around 60 people. We are really happy that we got to be a part of that and do what we could to contribute to what Lendify is, a successful FinTech company.
When it comes to what is next for Lendify, as part of Lunar Group, we believe that the combination has the potential of being the next Nordic FinTech star. For Lendify the big question has been if they should go for a banking license or not, this would have come with a regulatory burden, however, it would decrease the cost of capital and therefore generate better margins. As part of Lunar, Lendify will now be able to not just operate under a banking license it will work under a neobank that have shown that you can still be agile, customer focused and tech savvy while holding a banking license. Lunar on the other hand, as for all neobanks, faces the challenge that it is hard to charge for banking services today since incumbent banks are making their money largely on their big balance sheets and not from their services. Hence, as a neobank you need to offer services where you have bigger revenues, such as unsecured consumer loans. So, we believe that Lendify and Lunar are actually bridging each other’s challenges, Lendify will now be equipped with a banking license while Lunar will add on a credit facility that have been operating for 7 years and shown that deliver great services.
As for Vidici, we take place as shareholders in the Lunar and do so truly excited to follow the next chapter of Lendify. We will continue to work with the company and the management team to support them any way we can and together we are now setting the goal to be the dominant neobank in the Nordic and the next Nordic FinTech star.
/ The team at Vidici