Froda secures Series B funding to expand embedded SME finance across Europe

European embedded finance fintech Froda has raised €20 million (224 million SEK) in a Series B funding round led by Stockholm-based Incore Invest, with a view to accelerating its embedded SME finance offering across Europe.

Froda will use the new investment to scale its operations, onboard new embedded finance partners, and expand into additional European markets.

According to Froda, the Series B round received ongoing backing from the majority of its existing investors.

Froda’s embedded finance platform integrates directly with banks, neobanks and payment providers to enable SMEs to access instant financing “at the point of need”.

Froda reported 30% year-over-year customer growth in 2024, and signed one new embedded partner per month.

In February this year, Froda expanded its partnership with digital challenger bank Lunar into Sweden, so that customers can gain access to and benefit from Froda’s embedded SME lending solution.

“We’re in the middle of a pivotal growth phase for Froda, and seeing strong demand from both new and existing partners across Europe,” said Olle Lundin, co-founder and chief executive officer of Froda.

“With Incore Invest’s backing, we can accelerate our growth and scale our partnerships to continue supporting SMEs with the financing they need.”

Lundin added that the additional funding allows Froda to “double down” on its mission to “make financing easier, fairer and more accessible”.

Nicolai Chamizo, founder and chief executive officer of Incore Invest, said it looks 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,” Chamizo added.

Incore Invest recently launched its second fund, Incore Invest II, which is dedicated to accelerating the growth of “high-performing” fintech, SaaS and embedded finance companies.

Further reading: Sweden’s Juni forms embedded finance partnership with Froda