Funding secured by Froda for Europe-wide expansion of Small and Medium Enterprise finance through embedded services
Froda, a Swedish embedded finance fintech, has raised €20 million in a Series B funding round, marking a significant milestone in the company's growth journey. The funding round was led by Stockholm-based Incore Invest, a venture capital firm dedicated to accelerating the growth of fintech, SaaS, and embedded finance companies.
Froda's embedded finance platform enables the integration of financial services directly into business processes, primarily focusing on empowering small and medium-sized enterprises (SMEs) with financing options. By embedding these capabilities within business and transactional platforms, Froda facilitates seamless access to credit and financing without the need for standalone financial services interactions.
The funding will be used to scale operations, onboard new embedded finance partners, and expand into additional European markets. Froda's CEO, Olle Lundin, stated that the company is in a pivotal growth phase and seeing strong demand from partners across Europe.
In February this year, Froda expanded its partnership with digital challenger bank Lunar into Sweden, allowing customers to gain access to and benefit from Froda's embedded SME lending solution through Lunar. This partnership is part of Froda's broader strategy to grow its presence and partnerships across Europe.
Recently, Froda initiated a strategic partnership with Ageras, a platform that supports SMEs, to boost SME financing accessibility across the continent. This partnership is expected to further strengthen Froda's position in the European market.
Nicolai Chamizo, the founder and CEO of Incore Invest, sees Froda as a business that is not just disrupting markets but fundamentally reshaping them. He expressed his confidence in Froda's strong business strategy, impressive growth trajectory, and industry-leading partnerships, making it a standout investment for Incore Invest.
Froda reported 30% year-over-year customer growth in 2024, underscoring the demand for its innovative embedded finance solutions. The Series B round received ongoing backing from the majority of Froda's existing investors, reflecting their continued faith in the company's potential.
As Froda continues to expand across Europe, Incore Invest will support the company in its growth journey, helping it to scale and solidify its position as a leading embedded finance provider in the continent.
For further reading, Sweden's Juni forms an embedded finance partnership with Froda, and Froda signs one new embedded partner per month.
References:
- Froda raises €20 million in Series B funding
- Froda secures €20 million in Series B funding to fuel European expansion
- Froda partners with Ageras to boost SME financing across Europe
- Froda expands partnership with digital challenger bank Lunar into Sweden
- Froda signs one new embedded partner per month
- Froda plans to utilize the €20 million Series B funding to enhance operations, onboard new embedded finance partners, and expand into additional European markets.
- The partnership between Froda and Ageras is part of Froda's broader strategy to grow its presence and partnerships across Europe, aiming to boost SME financing accessibility.
- With their recent expansion into Sweden, Froda’s embedded SME lending solution is now accessible to customers through the digital challenger bank Lunar, marking another development in Froda's growth journey.
- Nicolai Chamizo, CEO of Incore Invest, has expressed his confidence in Froda, noting the company's strong business strategy, impressive growth trajectory, and industry-leading partnerships, making it an attractive investment for Incore Invest.
- Froda's focus on continuous expansion is evidenced by the company's recent momentum, having signed one new embedded partner per month.
