Swedish fintech startup Froda has secured a $22.7 million (€20 million) Series B round led by Incore Invest, also based in Sweden. The move bucks the trend of a slight slowdown in investments into fintech, plus a further confirmation of the long-term trend toward the “embedded finance” model.
Largely operating in northern European countries, from Finland down to the U.K., Froda offers debt financing for small businesses (SMEs) and is embedded in verticals such as marketplaces or payment platforms. The investment will be used to fuel broader European expansion.
The financing is assessed via a cash flow analysis through an SME’s bank accounts, enabling the lending to take place.
Olle Lundin, co-founder and CEO at Froda, told TechCrunch: “SMEs are a really underserved sector in Europe … and we’re doing that in a way which sets up great terms for the SMEs … and also we are providing a fantastic user experience, which means that an SME will always have access to financing.”
Froda claims to have attained a 30% year-over-year customer growth (2024) and is gaining a new embedded partner per month.
Similar SME debt financing companies aimed at small businesses include Ulend out of Brazil, Liberis in the U.K., and Banxware in Germany.
