Froda, an embedded finance provider based in Sweden, has secured a €20 million investment to support its expansion across Europe and enhance its data-driven financing solutions for SMEs.

The Series B funding round was led by Incore Invest, with continued support from the company’s existing investors.

The investment comes at a time when fintech fundraising has slowed considerably, with many companies finding it difficult to attract equity.

It highlights growing confidence in embedded finance as a scalable and sustainable model for fintech growth.

The €20 million will be used to scale Froda’s operations, onboard new embedded finance partners, and expand 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,”

said Olle Lundin, co-founder and CEO of Froda.

Froda has seen strong momentum, with a 30% year-on-year customer growth in 2024, signing one new embedded partner per month, and being included in the FT1000: Europe’s Fastest Growing Companies 2025 list.

The company recently expanded its partnership with the European Investment Fund (EIF) to launch the first pan-European microfinancing guarantee of its kind.

This partnership will allow Froda to scale its proven Swedish model across Europe, where its SME customers already grow 12 times faster than the national average.

Froda’s embedded finance platform integrates directly with banks, neobanks, and payment providers, allowing SMEs to access instant financing when needed.

Recent partnerships with Mimo (UK), Lunar (Nordics), and Kontist (Germany) highlight the increasing demand for Froda’s solutions, particularly in response to the €400 billion SME funding gap in Europe that the company aims to address.

“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,”

said Nicolai Chamizo, founder and CEO of Incore Invest.

Featured image credit: edited from freepik