Stockholm-based fintech Froda has raised €20 million in a Series B round led by Incore Invest, with continued backing from existing investors, to scale its embedded finance platform across Europe. The funding, which arrives amid a broader fintech fundraising slowdown, reflects investor confidence in Froda’s data-driven model, which integrates directly with banks and payment providers to offer SMEs fast, seamless financing. With 30% year-over-year customer growth and strategic partnerships across the UK, Nordics, and Germany, Froda plans to use the capital to deepen its partner network, expand into new markets, and strengthen its position in closing Europe’s €400 billion SME funding gap. The investment also marks a flagship move from Incore Invest’s new fund, aimed at scaling standout fintech and embedded finance ventures across the continent.
Froda is a fintech company established in 2015, focused on providing financing solutions for small and medium-sized enterprises (SMEs) through embedded finance. The company develops digital lending infrastructure that integrates directly with banks, neobanks, and payment providers, allowing SMEs to access loans within partner platforms. Froda’s technology streamlines the loan process using automation and real-time data, aiming to reduce application and approval times. Operating in multiple European markets including the Nordics, UK, Ireland, and Germany, Froda is licensed by the Swedish Financial Supervisory Authority and works with financial institutions and platforms to address funding access challenges for SMEs.
The raise comes at a time when fintech fundraising has slowed significantly, with many players struggling to attract equity. The investment underscores growing investor confidence in embedded finance as a model for scalable and sustainable fintech growth. The €20M investment will be poured into scaling Froda’s operations, onboarding new embedded finance partners and expanding into additional European markets.
“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,” says Olle Lundin, co-founder and CEO at Froda.
Froda’s momentum has been undeniable, with 30% year-over-year customer growth (2024), the signing of one new embedded partner per month, and its inclusion in the FT1000: Europe’s Fastest Growing Companies 2025. Froda also recently expanded its partnership with the European Investment Fund (EIF), launching the first pan-European microfinancing guarantee of its kind. This enables Froda to scale its proven Swedish model across Europe, where its SME customers already grow 12x faster than the national average, further cementing its leadership in embedded finance.
Froda’s embedded finance platform integrates directly with banks, neobanks and payment providers, enabling SMEs to access instant financing at the point of need. Recent partnerships with Mimo (UK), Lunar (Nordics) and Kontist (Germany) underscore the growing demand for Froda’s solutions, a timely response to Europe’s €400 billion SME funding gap that Froda is determined to close.
“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,” says Nicolai Chamizo, founder and CEO at Incore Invest.
This latest investment in Froda is one of the first strategic moves from Incore Invest, which recently launched its second fund, Incore Invest II. The fund is dedicated to accelerating the growth of high-performing fintech, SaaS and embedded finance companies. As part of a broader portfolio strategy, Froda stands as a flagship example of the future of fintech and investment growth within the Nordic region and exemplifies the type of company Incore’s fund is designed to support.
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Read the orginal article: https://arcticstartup.com/froda-raises-e20m-series-b/
