Swedish fintech startup Froda raises €20M Series B to expand embedded SME financing across Europe

Amid a fintech funding slowdown that’s left many startups scrambling, Swedish embedded finance scaleup Froda just secured €20 million in fresh capital—one of the few standout equity rounds in Europe this year.

The Series B was led by Stockholm-based Incore Invest, with continued support from Froda’s existing investors. The funds will help Froda grow its embedded finance partnerships, expand across Europe, and make it easier for SMEs to access the financing they need.

Froda isn’t just another fintech hoping for better days. With 30% year-over-year growth, a new embedded partner added every month, and clients growing 12x faster than average, it’s quickly becoming one of Europe’s most watched fintech scaleups.

The company is riding strong momentum—its inclusion in the FT1000: Europe’s Fastest Growing Companies 2025 and a recent partnership with the European Investment Fund (EIF) for a first-of-its-kind, pan-European microfinancing guarantee further signal it’s not slowing down anytime soon.

Founded in 2015 by Olle Lundin, Froda’s original mission was simple: make business financing less painful. It used tech to speed up a loan process that typically took months and trimmed it down to minutes. That clarity in execution has helped it become one of Europe’s fastest-growing fintech scaleups.

Froda’s embedded model plugs directly into banks, neobanks, and payment providers, letting entrepreneurs access financing where and when they need it. Partners like Lunar (Nordics), Mimo (UK), and Kontist (Germany) reflect strong traction and growing demand, especially as Europe grapples with a €400 billion SME funding gap.

“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, Froda’s co-founder and CEO. “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.”

For Incore Invest, Froda fits neatly into its thesis. The firm, founded in 2022 by Nicolai Chamizo, focuses on growth-stage internet and tech investments across Europe. Its second fund, Incore Invest II, is aimed at backing high-performing fintech and embedded finance startups that are actively reshaping how financial services reach users.

“At Incore Invest, we look for businesses that are not just disrupting markets but fundamentally reshaping them,” said Chamizo. “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.”

From its roots in Sweden to new partnerships across the UK, Ireland, and Germany, Froda has grown into a key player in embedded finance. The model is resonating with both investors and the market. And at a time when most fintechs are scrambling to raise, Froda seems to be picking up speed.