Froda secures 150 million euros for EU-wide microfinancing

Swedish fintech Froda expands its partnership with the European Investment Fund (EIF) and mobilizes €150 million for SME financing across Europe

Stockholm, February 5, 2025 - Swedish financial services provider Froda has expanded its cooperation with the European Investment Fund (EIF) and secured an additional loan guarantee of €100 million. This brings the total financing capacity to 150 million euros. The expanded partnership makes Froda the first company to receive an EU-wide microfinance guarantee from the EIF to help small and medium-sized enterprises (SMEs) in all 27 EU Member States access much-needed financing.

Closing the SME financing gap

The financing gap for SMEs in Europe is estimated at around €400 billion. Many small businesses continue to struggle to access the finance they need to grow and remain competitive. The EIF is addressing this problem with targeted guarantee schemes to give SMEs better access to credit. Froda has been working with the EIF since 2022 to provide financial support, particularly to micro-enterprises in Sweden with fewer than nine employees. The successes so far speak for themselves: SMEs financed through Froda recorded an average growth of 131% in the first year after financing.

Expansion to 10,000 SMEs in Europe

With the extended guarantee, Froda plans to expand its model to 10,000 companies across Europe. The aim is to promote economic growth and innovation, particularly supporting companies that have had limited access to fair financing solutions. The partnership with the EIF also enables Froda to accompany its embedded finance partners into new markets and build a cross-border financing network.

With the extended support of the EIF, we are taking a decisive step towards opening up new growth opportunities for SMEs across Europe. This partnership will enable our embedded partners to enter new markets and change the landscape of SME finance for good.

Olle Lundin, CEO and co-founder of Froda

EIF focuses on sustainable financing infrastructure

The agreement not only supports Froda's international expansion goals, but also aligns with the EIF's strategy to further develop European microfinance.

The InvestEU program is designed to create scalable, impactful solutions for microfinance. The EIF's targeted guarantees have already proven to enable micro-enterprises to grow in Sweden. Extending this model across the EU will create a sustainable financing infrastructure that strengthens Europe's entrepreneurial backbone.

Marjut Falkstedt, CEO of the EIF

Since 2021, Froda has increasingly focused on embedded finance solutions to drive its international growth. Through partnerships with banks, payment providers and fintechs, Froda offers white-label credit services that integrate seamlessly with partners' platforms. This strategy enables companies to offer loans directly to their customers, further simplifying access to finance. The EIF's expanded support not only strengthens Froda's financing capacity, but also consolidates its position as a leading player in European microfinance.