Swedish embedded finance scaleup Froda has secured €20 million in Series B investment to accelerate its European expansion and provide small businesses with faster, data-driven access to financing. The round was led by Incore Invest, with continued support from Froda’s existing investors. Earlier this year, the company grabbed €150 million.
Tackles the €400B SME funding gap
Froda is taking on one of Europe’s most critical economic challenges: the €400 billion SME funding gap. Traditional business lending remains slow, paper-heavy, and inaccessible for many small and medium-sized enterprises. The company is flipping that model by embedding financing directly into platforms where SMEs already operate neobanks, payment providers, and digital financial tools.
Its technology allows business owners to secure financing in minutes, not weeks or months, right at the point of need. As a result, SMEs using Froda’s solutions grow up to 12x faster than the national average, helping to power Europe’s broader economic resilience.
Smart capital, strategic timing
The broader fintech funding market has cooled, with many companies struggling to attract equity capital. Froda’s ability to raise such a substantial round demonstrates the enduring appeal of embedded finance as a scalable and sustainable model for fintech growth.
The investment will be used to scale operations, onboard new embedded finance partners, and expand into additional European markets. The company already has a strong presence in the Nordics, UK, Ireland, and Germany, and is now well-positioned to accelerate further into underserved regions.
Backing from Incore Invest also adds strategic muscle. This is one of the first investments from the firm’s new fund, Incore Invest II, which is focused on high-growth fintech, SaaS, and embedded finance businesses. Froda’s performance and embedded model make it a flagship portfolio company for the fund and a strong bet on the future of Nordic fintech innovation.
Proven momentum and accelerated growth
Froda’s growth numbers speak for themselves. In 2024, the company achieved 30% year-over-year customer growth, signed one new embedded partner per month, and earned a spot on the prestigious FT1000: Europe’s Fastest Growing Companies 2025 list.
The company’s existing partners include major fintech names such as Lunar (Nordics), Mimo (UK), and Kontist (Germany). This is a proof of the pan-European demand for Froda’s easy, embedded loan solutions. These integrations allow the company to offer financing exactly when and where small businesses need it most—without requiring a separate application or lengthy approval process.
Froda also recently deepened its relationship with European Investment Fund (EIF), launching Europe’s first pan-European microfinancing guarantee. This development makes its Swedish-born model scalable across the continent, giving SMEs in other markets the same access to fast, fair, and flexible financing.
Tech-driven platform
Founded in 2015 by Olle Lundin, Oliver Mohseni Skoglund, and Martin Roxland, Froda is a fintech built for the digital age. Its proprietary platform streamlines the entire lending process, from application and credit scoring to disbursement and repayment, entirely online. By integrating directly with digital banking and payments infrastructure, Froda enables instant lending decisions backed by real-time data.
Crucially, it operates as a licensed credit market company regulated by the Swedish Financial Supervisory Authority, ensuring its services meet the highest standards of financial compliance and consumer protection.
Future outlook
As the fintech sector searches for its next wave of innovation, Froda represents a powerful example of embedded finance done right. With its Series B round, the fintech is not just reshaping SME finance in Europe but leading a transformation that could define the future of fintech across the continent.
“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,” said Olle Lundin, co-founder and CEO at Froda.
“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,” said Nicolai Chamizo, founder and CEO at Incore Invest.
