Froda, a Stockholm-based embedded finance scaleup, has secured €20 million in Series B funding to accelerate its European expansion and tackle one of the continent’s most persistent economic issues: the €400 billion SME funding gap.
The round was led by Incore Invest, with continued support from Froda’s existing backers.
This follows a €150 million capital raise earlier this year, bringing renewed momentum to Froda’s mission of making business financing faster, fairer, and more accessible across Europe.
Fixing a Broken Lending System
Traditional SME lending remains painfully slow, paperwork-heavy, and out of reach for many small businesses. Froda is flipping the model by embedding lending tools directly into the digital platforms where business owners already operate—like neobanks, payment providers, and financial management apps.
With Froda’s tech, entrepreneurs can access loans in minutes, not weeks—all within the apps they already use. This seamless experience helps SMEs grow up to 12x faster than the national average, according to Froda’s internal data.
“Our goal has always been to make financing easier, fairer, and more accessible,” said Olle Lundin, Co-founder and CEO. “This funding allows us to double down on that mission.”
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Strategic Backing in a Cooling VC Market
Despite the broader fintech slowdown, Froda’s successful raise highlights the growing strength of embedded finance as a business model. The funding will be used to:
- Expand into underserved European markets
- Onboard new embedded finance partners
- Scale operations and product development
Incore Invest’s participation also brings strategic weight. This investment marks one of the first from Incore Invest II, a new fund focused on high-growth fintech and SaaS ventures. Froda is now positioned as a flagship investment in its portfolio.
“Froda isn’t just disrupting the market—it’s redefining how SME finance should work,” said Nicolai Chamizo, founder and CEO at Incore Invest. “The team’s execution, partner network, and vision make this a standout opportunity.”
Real Traction, Real Growth
The momentum is undeniable. In 2024, the company:
- Achieved 30% year-over-year customer growth
- Signed one new embedded partner per month
- Landed on the FT1000 list of Europe’s Fastest Growing Companies (2025)
Existing partnerships with fintech leaders like Lunar (Nordics), Mimo (UK), and Kontist (Germany) demonstrate cross-market demand for Froda’s frictionless loan integration.
And in a key development, Froda recently launched Europe’s first pan-European microfinance guarantee in partnership with the European Investment Fund (EIF)—enabling wider access to credit across borders.
Built for the Embedded Era
Founded in 2015 by Olle Lundin, Oliver Mohseni Skoglund, and Martin Roxland, the scale-up has created a fully digital, regulated lending platform that automates every step—from application to disbursement. By integrating with banking and payment APIs, Froda delivers real-time lending decisions backed by live financial data.
It also operates under a license from the Swedish Financial Supervisory Authority, ensuring full compliance with consumer protection standards across markets.
What’s Next
With fresh capital and a rapidly growing footprint, the company is doubling down on its pan-European strategy. The company is expanding into new regions, strengthening its partner network, and continuing to refine its platform for scale.
“We’re seeing strong demand from both new and existing partners,” Lundin added. “We’re entering a pivotal phase—this is about scaling embedded lending to support thousands more SMEs across Europe.”
The firm’s rise underscores a broader shift in fintech: from flashy disruptors to infrastructure-first innovators. As the SME funding gap remains one of Europe’s biggest economic challenges, Froda is positioning itself not just as a lender—but as the platform powering a more inclusive financial future.
