Nordic challenger bank Lunar is to acquire the loan book of Swedish digital lender Lendify.
The sale reflects the challenges facing standalone lenders without a deposit-taking licence to fund their lending operations. Lunar's application for a credit licence was rejected last year and the firm has struggled to raise a profit.
The peer-to-peer lender currently has 40,000 customers and a €300 million loan book.
The sale to Lunar will involve the transfer of the company's 61 employees and investors. Since being founded in 2014, Lendify has raised a total of €90m in equity funding.
Terms of the transaction were not disclosed, but it is understood that Lunar is looking at an all-stock deal in the region of €100 million.