Swedish fintech startup Froda has secured the $22.7 million (20 million euros) Series B round, led by Sweden-based Incore Invest. The move further confirms the long-term trend towards an “embedded finance” model, along with a slight slower trend in fintech investments.
Operated primarily in Northern European countries from Finland to the UK, Froda provides debt funding to small and medium-sized businesses, embedded vertically in markets and payment platforms. This investment will be used to promote broader European expansion.
Funding will be evaluated and loaned through cash flow analysis through small business bank accounts.
Olle Lundin, co-founder and CEO of Froda, told TechCrunch: “Small and medium-sized businesses are truly a poorly serviced sector in Europe, and they do that in a way that sets big terms for small and medium-sized businesses.
Froda claims to have achieved 30% customer growth (2024) over the previous year, gaining new embedded partners in the month.
Similar SME debt finance companies targeting small and medium-sized businesses include Ulend from Brazil, Liberis in the US, and Bankxware in Germany.