Froda, the Swedish fintech startup, has raised €20 million to scale its embedded lending services across Europe. This latest funding round, led by Incore Invest, builds on the €150 million debt facility Froda secured earlier this year. The goal? To help more small businesses access fast, fair, and simple financing—right when they need it.
Europe’s €400 billion SME funding gap remains one of the biggest roadblocks to economic growth. Traditional loans are often too slow, complex, and limited. Froda changes that by embedding credit solutions into the digital tools small businesses already use—like neobanks, payment apps, and accounting software.
Instead of waiting weeks, SMEs can access financing within minutes. This tech-driven, point-of-need model allows Froda to meet businesses where they are and support their growth at the exact moment they need capital. It’s one reason why SMEs using Froda’s platform grow up to 12 times faster than the national average.
Expanding Across Borders with Smarter Lending
The new capital will help Froda enter more European markets and strengthen its partnerships. The company already operates in the Nordics, the UK, Ireland, and Germany. Now, it’s preparing to move into other underserved regions, offering its plug-and-play credit infrastructure to more platforms across the continent.
While many fintech firms are struggling to raise funds, Froda’s success highlights the strength of embedded finance. Incore Invest chose Froda as one of the first companies backed by its new fund, Incore Invest II. The fund targets high-growth fintech and SaaS ventures, and Froda’s strong momentum made it a natural fit.
In 2024 alone, Froda achieved 30% year-over-year customer growth. It also partnered with one new fintech platform every month and earned a spot on the FT1000: Europe’s Fastest Growing Companies 2025 list. Its current partner network includes Lunar in the Nordics, Mimo in the UK, and Kontist in Germany.
Froda also teamed up with the European Investment Fund to launch the first pan-European microfinancing guarantee. This initiative helps Froda offer fast, secure loans to more businesses across borders—while keeping the process digital and seamless.
Founded in 2015, Froda’s platform handles everything online—from credit checks to fund disbursement and repayment. It’s fully licensed and regulated in Sweden, giving users confidence in the platform’s security and transparency.
As Froda scales its model across Europe, it is proving that embedded finance isn’t just a trend—it’s the future of SME lending.
