Sweden-based Froda raises €20M to expand its embedded financing services for SMEs across Europe

Stockholm-based Froda, a company in embedded finance, has raised €20M in a Series B funding round. The investment was led by Incore Invest, with participation from most existing investors.

Incore Invest has made its first strategic investment from its new fund, Incore Invest II. As a key part of its portfolio, Froda represents the type of company Incore aims to back, highlighting the potential for fintech and investment growth in the Nordic region.

Nicolai Chamizo, founder and CEO at Incore Invest, says, “At Incore Invest, we look for businesses that are not just disrupting markets but fundamentally reshaping them. 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.”

Capital utilisation

Froda will use the funds to expand its presence in Europe, grow operations, onboard embedded finance partners, and offer data-driven financing services to more small and medium-sized enterprises (SMEs).

Froda secured the investment during a period of reduced fintech fundraising. Many companies in the sector are finding it difficult to raise equity. The funding reflects investor interest in embedded finance as a model for fintech growth. 

Olle Lundin, co-founder and CEO at Froda, says, “We’re in the middle of a pivotal growth phase for Froda, and seeing strong demand from both new and existing partners across Europe. With Incore Invest’s backing, we can accelerate our growth and scale our partnerships to continue supporting SMEs with the financing they need.”

Lundin adds, “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.”

Empowering entrepreneurs by simplifying access to financing

Founded in 2015, Froda offers an embedded finance platform that integrates with banks, neobanks, and payment providers to deliver instant financing to small and medium-sized enterprises (SMEs). The company uses technology to reduce loan processing times and help entrepreneurs access capital.

Froda operates across the Nordics, the UK, Ireland, and Germany. It has formed partnerships with companies such as Visa, Checkout.com, and Lunar. It is a licensed credit market company and is regulated by the Swedish Financial Supervisory Authority.

Froda reported 30 per cent customer growth year-over-year in 2024 and is adding one embedded finance partner each month. 

The company expanded its partnership with the European Investment Fund (EIF) by launching a pan-European microfinancing guarantee. This supports the expansion of Froda’s lending model across Europe, where its SME customers grow 12 times faster than the national average.

The company has recently partnered with Mimo in the UK, Lunar in the Nordics, and Kontist in Germany. These partnerships support Froda’s efforts to address Europe’s €400B SME funding gap.

Brief about Incore Invest

Founded in 2022 by Nicolai Chamizo, Incore Invest is an investment firm that focuses on growth-stage investments in the internet and technology sectors. The Stockholm-based firm works closely with founders and management teams to scale businesses. 

Incore Invest provides strategic capital and support to its portfolio companies, which include Brite Payments, Froda, Mynt, SAVR, and Kameo. In 2025, the firm launched its second fund, Incore Invest II, to support high-growth opportunities across Europe.