Swedish fintech innovator Froda has raised $22.7 million (€20 million) in a Series B funding round led by fellow Swedish investor Incore Invest. This impressive funding round defies the recent dip in fintech investments. Reinforcing the rising dominance of the embedded finance model.
Froda’s business model focuses on providing accessible debt financing to small and medium-sized enterprises (SMEs). Operating mainly in Northern Europe — from Finland to the United Kingdom. Froda’s lending services are seamlessly integrated into platforms such as marketplaces and payment systems, offering fast and reliable financing solutions.
Driving Financial Innovation for SMEs
What sets Froda apart is its automated cash flow analysis, which evaluates an SME’s financial health using real-time data from their bank accounts. This smart system enables rapid decision-making, making it easier for businesses to secure the funds they need.
According to Olle Lundin, Froda’s co-founder and CEO, small businesses in Europe are often overlooked when it comes to financing. “SMEs are a really underserved sector in Europe,” said Lundin in a recent interview. “We’re offering them favorable loan terms and a top-notch digital experience that ensures ongoing access to funding.”
Froda has been growing steadily, boasting a 30% increase in customer acquisition year-over-year in 2024. The company is also expanding its reach by forming a new embedded partnership each month, signaling strong momentum in its mission to reshape SME financing.
Froda joins a growing list of global companies working in the SME lending space. Notable peers include Ulend in Brazil, Liberis in the U.S., and Banxware in Germany — each tapping into the vast, underbanked SME market.
As Froda sets its sights on broader European expansion. The new funding will support product development, partnership integrations, and deeper market penetration. Positioning the company as a leading force in Europe’s fintech evolution.
