Froda, a credit provider regulated by the Swedish Financial Supervisory Authority, has strengthened its partnership with the European Investment Fund (EIF) by securing an additional €100 million in lending guarantees, bringing the total to €150 million.
The agreement extends Froda’s leasing and financing solutions to SMEs across all 27 EU member states, addressing the significant funding gap small businesses face.
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The EIF is part of the European Investment Bank Group.
The SME financing gap in Europe is estimated at €400 billion, with many small enterprises struggling to access the capital needed for growth. The EIF, through various guarantee programmes, works to expand financing options for SMEs, including leasing solutions that enable businesses to acquire essential equipment and assets without upfront capital constraints.
Froda, which has partnered with the EIF since 2022, initially focused on supporting microenterprises in Sweden. The company’s financing model has demonstrated strong results, with SMEs experiencing an average growth of 131% within their first year of funding.
With the new €150 million guarantee, Froda aims to scale this approach across Europe, enabling 10,000 SMEs to access leasing and financing solutions that support business expansion. By integrating EIF-backed guarantees into its embedded financing platform, Froda is positioned to extend leasing opportunities to more small businesses, helping them acquire the tools, equipment, and resources needed to compete in their industries.
“The extended support from EIF represents a pivotal step in our mission to unlock growth opportunities for SMEs throughout Europe,” said Olle Lundin, CEO and co-founder of Froda. “By enabling our Embedded partners to expand into new markets, this partnership is set to transform the landscape of SME leasing and financing. Our vision is to create a financial ecosystem that fosters cross-border expansion for both Froda and our partners.”
As the first company to secure a microfinance guarantee covering all EU member states, Froda is expanding opportunities for its Embedded partners, allowing them to provide EIF-backed leasing solutions across Europe. The partnership aligns with the EIF’s mission to promote microfinance, entrepreneurship, and inclusive economic growth while advancing the EU’s objectives of digitalisation and equitable access to financing.
“The InvestEU programme is designed to provide scalable, impactful solutions for micro-financing and leasing. We’ve already seen how EIF’s targeted guarantees in Sweden have enabled Froda to unlock growth for microenterprises,” said Marjut Falkstedt, CEO of EIF. “Expanding this model across the EU will help build a robust and sustainable leasing infrastructure that supports Europe’s entrepreneurial backbone.”
Froda has focused on embedded finance as a core strategy for international expansion, partnering with banks, payment providers, and fintech firms to offer white-label SME lending and leasing services. These solutions integrate seamlessly into partner platforms, enabling businesses to access financing directly. With increased support from the EIF, Froda is set to expand its leasing capabilities across Europe, further solidifying its position as a leading fintech player in SME financing.
Founded in 2015, Froda has operations across the Nordics, the UK, Ireland, and Germany.
