Swedish FinTech company Froda, a leading provider of embedded finance solutions for small and medium-sized enterprises (SMEs), has raised €20m in a Series B funding round.
The investment was led by Incore Invest, with strong support from Froda’s existing backers.
Founded in 2015, Froda enables SMEs to access instant financing directly through banking, neobank, and payment platforms. By streamlining the loan process from months to minutes, Froda aims to remove traditional friction from business lending and empower entrepreneurs with easier access to growth capital. The firm operates across the Nordics, UK, Ireland and Germany, and holds a credit market licence from the Swedish Financial Supervisory Authority.
The fresh capital will be used to expand Froda’s embedded finance partnerships and accelerate its European market entry. With demand from new and existing partners rising, the company is focused on extending its reach and continuing to address the continent’s estimated €400bn SME funding gap.
Recent milestones underscore Froda’s momentum. The company reported 30% year-over-year customer growth in 2024 and has been onboarding one new embedded partner per month. It also expanded its collaboration with the European Investment Fund (EIF) to offer a pan-European microfinance guarantee, enabling Froda to scale its model well beyond Sweden.
Froda CEO and co-founder Olle Lundin said, “We’re in the middle of a pivotal growth phase for Froda, and seeing strong demand from both new and existing partners across Europe. With Incore Invest’s backing, we can accelerate our growth and scale our partnerships to continue supporting SMEs with the financing they need. Our goal has always been to make financing easier, fairer and more accessible, and the additional funding allows us to double down on that mission.”
Incore Invest CEO Nicolai Chamizo said, “At Incore Invest, we look for businesses that are not just disrupting markets but fundamentally reshaping them. Froda is a prime example of this. Its strong business strategy, impressive growth trajectory and industry leading partnerships make it a standout investment for us. We are proud to support Froda as they expand across Europe and continue to scale.”
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