Swedish fintech startup Froda has closed a €20 million Series B funding round, led by Incore Invest. The raise comes at a time when global fintech investment has seen a modest dip, making Froda’s success a strong signal of continued investor confidence in the embedded finance model.

Froda focuses on providing debt financing to small and medium-sized enterprises (SMEs) across Northern Europe, including markets from Finland to the UK. Its services are seamlessly integrated into platforms like marketplaces and payment systems, allowing SMEs to access funding where they already do business.

The company’s lending decisions are powered by cash flow analysis directly from an SME’s bank accounts, creating a faster and more data-driven financing experience.

“SMEs remain one of the most underserved segments in Europe,” said Froda co-founder and CEO Olle Lundin in an interview with TechCrunch. “We’re tackling that challenge by offering not only fair terms but also a smooth, user-friendly experience—making financing consistently available for small businesses.”

The company has reported a 30% year-over-year growth in its customer base in 2024 and is adding new embedded finance partners at a steady pace—averaging one per month.
Froda joins a growing list of fintech players targeting SME financing, alongside international peers like Brazil’s ULend, US-based Liberis, and Germany’s Bankxware.

With this latest funding, Froda plans to scale its operations further across Europe, aiming to bring its embedded lending model to more markets and small businesses.