Froda Secures €20M to Bridge Europe’s SME Funding Gap with Innovative Embedded Finance Solutions
Froda, a prominent Swedish FinTech company, is revolutionizing embedded finance solutions for small and medium-sized enterprises (SMEs) by securing €20 million in a Series B funding round. This strategic investment, spearheaded by Incore Invest alongside existing supporters, positions Froda to significantly enhance its offerings and market presence across Europe.
Froda’s Innovative Approach to SME Financing
Founded in 2015, Froda specializes in providing SMEs with immediate access to financing through banking, neobank, and payment platforms. By reducing the loan approval process from months to mere minutes, Froda aims to eliminate traditional barriers in business lending. This approach empowers entrepreneurs by granting them easier access to essential growth capital.
Market Reach and Regulatory Compliance
Froda operates in several key markets, including the Nordics, UK, Ireland, and Germany, and holds a credit market license from the Swedish Financial Supervisory Authority. The funds raised will facilitate the expansion of Froda’s embedded finance partnerships and expedite its entry into the European market.
Addressing the SME Funding Gap
With an estimated €400 billion funding gap for SMEs in Europe, Froda is well-positioned to meet the rising demand from both new and existing partners. Recent achievements highlight Froda’s growth trajectory:
- 30% year-over-year customer growth reported in 2024.
- Onboarding of one new embedded partner every month.
- Enhanced collaboration with the European Investment Fund (EIF) to provide a pan-European microfinance guarantee.
Leadership Insights on Growth and Future Plans
Froda’s CEO and co-founder, Olle Lundin, expressed enthusiasm about the company’s current growth phase: “We’re experiencing significant demand from partners across Europe. With the support of Incore Invest, we can further accelerate our growth and scale our partnerships to continue aiding SMEs in accessing the financing they require.”
Nicolai Chamizo, CEO of Incore Invest, added, “Froda exemplifies a business that not only disrupts the market but reshapes it. Their robust strategy, impressive growth, and leading industry partnerships make them an exceptional investment opportunity.”
Froda’s commitment to making financing simpler, fairer, and more accessible continues to drive its mission, ensuring that SMEs have the resources they need to thrive. For more information about how Froda is transforming the FinTech landscape, visit their official website.
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