Froda Raises €20M for European Expansion in Embedded Finance

Swedish embedded finance scaleup Froda has raised €20 million in a Series B round led by Incore Invest, with participation from existing investors, at a time when fintech funding is generally slowing. The funding will be used to expand Froda’s embedded finance partnerships, grow its operations, and fuel broader European expansion, making it easier for small and medium-sized enterprises (SMEs) to access instant, data-driven financing. Froda’s platform integrates directly with banks, neobanks, and payment providers, enabling SMEs to obtain financing quickly at the point of need, and the company has demonstrated strong growth with a 30% year-over-year increase in customers and new partners added monthly. The investment is seen as a vote of confidence in the embedded finance model and Froda’s potential to address the significant SME funding gap across Europe. CEO Olle Lundin emphasized that the goal is to make financing easier, fairer, and more accessible for SMEs. Incore Invest highlighted Froda’s strong business strategy and industry partnerships as key reasons for their support.