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Froda raises €20M to accelerate embedded SME finance across Europe

Wednesday, April 23, 2025 — 16:27:42 (UTC)

Stockholm, April 23 2025 – Embedded finance player Froda has secured a €20M (222M SEK) investment to fuel its European expansion and provide more SMEs with seamless, data-driven financing. The Series B round was led by Incore Invest, with strong continued backing from the majority of existing investors.

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.

About Froda

Founded in 2015, Froda set out to redefine business financing by making it accessible, efficient, and empowering for small and medium-sized enterprises. Through digital processes and technological innovation, Froda has shortened the loan process from months to minutes, making it easy for entrepreneurs to invest in their ideas and grow with ease. Today, Froda is one of Europe’s fastest-growing fintech scaleups. With a strategic focus on embedded financing, Froda has expanded across the Nordics, the UK, Ireland and Germany, partnering with industry leaders like Visa, Checkout.com, Lunar. Froda is a licensed credit market company under the supervision of the Swedish Financial Supervisory Authority. For more information, visit Froda.

About Incore Invest

Incore Invest is a Stockholm-based investment firm specialising in growth-stage investments within the internet and technology sectors. Founded in 2022 by Nicolai Chamizo, the firm partners closely with founders and management teams to scale businesses into category leaders. Leveraging deep sector expertise and extensive networks across the European tech landscape, Incore Invest provides strategic capital and active support to its portfolio companies. Notable investments include Brite Payments, Froda, Mynt, SAVR, and Kameo. In 2025, the firm launched its second fund, Incore Invest II, to accelerate high-growth opportunities across Europe.

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Source: Company press release.

Categories: Announcement