Froda
Froda AB is a Stockholm-based, FSA-licensed credit market company founded in 2015 that provides digital SME business loans and a retail savings account directly to small businesses in Sweden, and offers a white-label embedded lending platform (Froda Embedded) to banks, fintechs, and platforms across seven European markets.
- Company typePrivate
- Founded2015
- HeadquartersStockholm, Sweden
- Headcount101–250
- GTM typeB2B and B2C
- OfferingServices
What Froda does
Froda AB is a Stockholm-based, Swedish FSA-licensed credit market company (kreditmarknadsbolag) founded in 2015 that provides digital SME financing across seven European markets (Sweden, Finland, Norway, Denmark, Germany, Ireland, UK) under a single EEA-wide license. The company operates two complementary revenue engines: a direct-to-customer storefront on froda.se offering business loans of SEK 5,000 to SEK 5,000,000 to sole traders, handelsbolag, and aktiebolag, plus a retail savings account (Sparkonto) with statutory deposit insurance that funds the lending book; and Froda Embedded, a white-label B2B platform enabling banks, neobanks, fintechs, payment service providers, and platforms to offer SME loans, installments, and funding under their own brand via API integration.
The underlying technology is a cloud-native, data-driven digital lending platform with machine learning-based credit underwriting that ingests applicants' actual transaction data (via BankID and bank-data consent flows) rather than relying on business plans, demographics, or customer relationship length. The platform supports end-to-end digital origination with BankID authentication, automated risk decisions (including GDPR Article 22 automated decisioning for sole traders), instant fund disbursement through Visa Direct, and a developer portal at docs.froda.se for embedded partners. Froda Embedded is backed by €500 million in European Investment Fund micro-finance guarantees and is a Visa Ready Program affiliate, with reported press coverage from Bloomberg, Forbes, TechCrunch, the Financial Times, and Sifted.
Froda monetizes primarily through interest income on direct business loans (individualized rates, no setup or admin fees) plus the net interest spread between Sparkonto deposits and loan yields; the embedded channel generates revenue through transaction-based take rates and multi-year partner contracts (with named partners including SpareBank 1 Østlandet, Triffin, Mimo, wamo, Juni, Ageras, Worldline, Treyd, Lunar, and Checkout.com). The company has served 50,000+ SMEs, holds 100+ employees, raised a €20 million round in April 2025 and a €50 million Series B in 2025, and is backed by high-profile individual investors including Karl-Johan Persson (H&M), Nicklas Storåkers (Avanza), and Victor Jacobsson (Klarna).
Froda firmographics
Firmographics- Name
- Froda
- Legal name
- Froda AB
- Website
- https://froda.se
- Company type
- Private
- Founded year
- 2015
- Operating status
- Operating
- Headcount range
- 101–250 employees
- Short description
- Froda AB is a Stockholm-based, FSA-licensed credit market company founded in 2015 that provides digital SME business loans and a retail savings account directly to small businesses in Sweden, and offers a white-label embedded lending platform (Froda Embedded) to banks, fintechs, and platforms across seven European markets.
- Ownership category
- akta.pro rank
Froda industry classification
Industry- Product category
- Digital SME Lending
- akta.pro primary industry
- SME Lending Platforms & Embedded SME Credit (FSAKAGAJ)
- akta.pro secondary industry
- BaaS Platforms & Sponsor Bank Enablement (FSAGALAA)
Keywords
Where Froda is headquartered
LocationHeadquarters
- HQ city
- Stockholm
- HQ country
- Sweden
- HQ region
- Europe
Offices1 record
Markets served
Froda business model
Business model- GTM type
- B2B and B2C
- Offering type
- Services
- Cost components
- Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure
Revenue model
- Interest income on business loans: Revenue from individually priced interest (annual or monthly) on direct business loans (5,000 kr to 5,000,000 kr, up to 60-month terms, annuity loans) to sole traders, handelsbolag, and aktiebolag in Sweden and other operating markets. Interest is the only cost charged to the borrower (no setup, notification, or admin fees).
- Savings-account funding spread: Funds lent to businesses originate from private savers' deposits on Froda's savings accounts (covered by statutory deposit insurance), so the net interest spread between deposit rates and loan rates is part of the revenue model.
- Embedded finance revenue (Loans, Installments, Funding): Revenue from white-label embedded financing solutions (Loans, Installments, Funding) sold to banks, neobanks, fintechs, payment service providers, and platforms; partners integrate the stack under their own brand.
- Broker commissions income: Revenue from broker-sourced loan applications (e.g., Lendo), where Froda pays and accounts for commissions and shares relevant personal data with the broker as supporting information for commission payment.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Other | Monthly | Direct business loan: 5,000 kr to 5,000,000 kr, up to 60 months, individual interest rate, interest is the only cost. |
| Other | Pay-as-you-go | Savings account (Sparkonto) for private savers. |
| Transaction based/ take rate | Multi-year contract | Froda Embedded Loans, Installments, and Funding for partners. |
Go-to-market motion5 records
Distribution channels6 records
Marketing channels11 records
Froda product offering
Product offeringCore offering
Froda is a Stockholm-based Swedish fintech providing fast, data-driven business loans ranging from 5,000 SEK to 5,000,000 SEK to small and medium-sized enterprises through a fully digital application flow with BankID verification and machine-learning-based credit scoring. It also operates a deposit-funded savings account (Froda Sparkonto) and a white-label embedded finance platform (Froda Embedded) that lets banks, fintechs, neobanks, payment service providers and platforms offer Froda's lending and deposit products under their own brand via API.
Product overview
Froda is a Swedish credit market company (kreditmarknadsbolag) and licensed credit institute offering a unified SME financing platform that combines direct-to-customer lending with embedded finance for partners. The portfolio is anchored by two core customer-facing products — Froda Företagslån (Business Loans), the direct digital business loan offering for Swedish SMEs, and Froda Sparkonto (Savings Account), the retail savings account that funds the lending — together with Froda Embedded, the B2B embedded finance sub-brand through which banks, fintechs, neobanks, payment service providers, and platforms integrate Froda's lending, installments, and funding capabilities under their own brand. Froda Embedded itself is structured as a platform with three product modules (Loans, Installments, and Funding) that partners can combine to serve SME end-customers, supported by a developer portal/API for integration. The company has helped over 50,000 businesses and operates across Sweden, Finland, Norway, Denmark, Germany, Ireland, and the UK, with EIF backing of €500M in micro-finance guarantees.
Differentiator
Problem solved
Functional benefit
Brands
- Froda Embedded: Embedded finance platform that allows partners such as banks, fintechs, neobanks, payment providers, and e-commerce platforms to offer business loans, instalments, and funding to SMEs under their own brand, fully integrated into their app or web app. Operated through frodaembedded.com.
Products and services
- Froda Företagslån (Business Loan) Unsecured business loan for Swedish SMEs (sole traders, handelsbolag, aktiebolag) ranging from 5,000 SEK to 5,000,000 SEK, applied for fully online with BankID, with individualized interest rates and a "lowest price guarantee." Funded primarily by retail deposits from the Froda Sparkonto savings account.
- Froda Sparkonto (Savings Account)
Companies that use Froda
Customer profileNamed customers11 records
Segments6 records
Ideal customer profiles3 records
Froda technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- Yes
- API docs
- API detail
Core technology
AI maturity
App detail
Integration15 records
AI capability10 records
Feature6 records
Froda partnerships and signals
Strategic signalPartnerships
14 partnerships are on record, tiered flagship bank partnership in norway; described as one of europe's first embedded sme lending bank-fintech deployments and a springboard to additional norwegian banks., flagship embedded partnership for the uk consumer-brand market; partnership launched october 2025., key embedded-funding partner for the uk smb market with pan-european expansion potential., core card-based-lending partnership in finland., core swedish embedded-lending joint venture., flagship payments partner; powers instant disbursement (visa direct) and signals partnership via the visa ready program., historical nordic neobank partner referenced in the company's ethical guidelines., historical payments-technology partner referenced in the company's ethical guidelines., visible testimonial partner on the froda embedded homepage., named example of an embedded partner acting as joint controller for personal data of sme applicants., operational broker partner named in the privacy policy as a broker source of preliminary offers., operational credit-information vendor used in kyc and application processing. and operational information-services vendor used in kyc and application processing..
- SpareBank 1 Østlandetflagship bank partnership in norway; described as one of europe's first embedded sme lending bank-fintech deployments and a springboard to additional norwegian banks.One of Norway's largest banks, serving more than 433,000 customers, partnered with Froda to address Europe's €400bn SME financing gap. The bank will integrate Froda's automated loan application directly into its existing customer journey, combining its 180-year-old trust and scale with Froda's data-driven automation, including instant fund disbursement through Visa Direct. The integrated lending solution was scheduled to launch by the end of Q1 2026, with Froda aiming to expand into additional Norwegian banks following this first traditional bank partnership.
- Triffinflagship embedded partnership for the uk consumer-brand market; partnership launched october 2025.UK-based AI finance platform that partnered with Froda to provide up to £100 million in flexible, data-driven financing to UK consumer brands over three years, integrating Froda's embedded finance technology into Triffin's AI-driven finance platform. The initiative aims to address cash-flow challenges amid a significant UK SME funding gap.
- Mimokey embedded-funding partner for the uk smb market with pan-european expansion potential.SMB financial management platform that announced an embedded funding partnership with Froda to unlock £92m in SME funding. Separately, Mimo raised an $8.5m equity round led by Project A (with Northzone and Seedcamp) and arranged an embedded funding partnership with Froda enabling it to provide UK SMEs with over $125m in flexible working capital solutions, with potential for pan-European expansion.
- wamocore card-based-lending partnership in finland.Partnered with Froda to launch card-based lending to bolster business financing in Finland.
- Junicore swedish embedded-lending joint venture.Swedish fintech Juni and Froda joined forces on an embedded lending venture.
- Visaflagship payments partner; powers instant disbursement (visa direct) and signals partnership via the visa ready program.Visa partner enabling instant fund disbursement through Visa Direct and affiliation with the Visa Ready Program, displayed on the Froda Embedded homepage. Visa is also listed among Froda's historical partners in the Etiska riktlinjer page.
- Lunarhistorical nordic neobank partner referenced in the company's ethical guidelines.Listed as one of Froda's partners in the Etiska riktlinjer (ethical guidelines) page, alongside Visa and Checkout.com.
- Checkout.comhistorical payments-technology partner referenced in the company's ethical guidelines.Listed as one of Froda's partners in the Etiska riktlinjer (ethical guidelines) page, alongside Visa and Lunar.
- Agerasvisible testimonial partner on the froda embedded homepage.Featured as a Froda Embedded Loans partner in customer testimonials on the Froda Embedded homepage, with a video testimonial.
- Worldlinevisible testimonial partner on the froda embedded homepage.Featured as a Froda Embedded Loans partner in customer testimonials on the Froda Embedded homepage, with a video testimonial.
- Treydnamed example of an embedded partner acting as joint controller for personal data of sme applicants.Example cited in the customer privacy policy of an embedded partner using Froda's funding solution; Froda and the partner are joint controllers for the processing of personal data needed to provide the business loan.
- Lendooperational broker partner named in the privacy policy as a broker source of preliminary offers.Broker that shares information with Froda to provide a preliminary offer for a business loan or financing.
- Creditsafeoperational credit-information vendor used in kyc and application processing.Credit information company used by Froda to collect information about a business in connection with the application process and to carry out know-your-customer (KYC) checks.
- Svensk Faktakontrolloperational information-services vendor used in kyc and application processing.Information service company used by Froda to collect publicly available information on board members of applying businesses in connection with the application process and KYC checks.
Scale indicators15 records
Recent moves7 records
Expansion highlights6 records
Froda competitors and assessment
Company assessmentDirect peers
- iwoca: London-based fintech providing short-term SME loans (up to £500k) to small businesses with automated, data-driven underwriting. Direct competitor to Froda's European SME lending model, with a similar self-serve digital funnel and embedded finance (iwocaX) product.
- Capital on Tap: UK SME lending/credit-card fintech serving small businesses with revolving credit and term loans via a digital application. Comparable to Froda's data-driven business lending and embedded financing model.
- YouLend: Embedded SME finance provider offering revenue-based finance and loans to small businesses through platforms and partners. Closely comparable to Froda Embedded's white-label Loans, Installments, and Funding offerings.
- Wayflyer: Ireland-based revenue-based financing provider for ecommerce and DTC brands across Europe. Comparable in SME digital lending and in operating in some of Froda's markets (Ireland, UK).
- Liberis: Embedded business finance provider partnering with banks and SaaS platforms to offer SME funding. Closely comparable to Froda Embedded's B2B2B2C white-label model and EIF-backed capital structure.
- Uncapped: UK-based revenue-based and embedded SME financier for digital businesses and SaaS companies. Comparable product set (working capital, growth funding) and European footprint to Froda Embedded.
- Billie: Berlin-based B2B BNPL and embedded working-capital provider for SMEs, white-labelled through platforms and PSPs. Direct comparator for Froda Embedded's German presence and B2B BNPL/Installments product.
- Stenn: UK-headquartered global fintech providing invoice and trade finance to SMEs via embedded partnerships with banks and platforms. Comparable in embedded SME finance and in operating across multiple European markets.
Broad incumbents
- Klarna: Swedish fintech giant offering consumer BNPL and increasingly SMB and embedded financial services. Comparable in origin (Sweden), technology stack, and broadening into SME and embedded finance, but operates at much larger scale with a consumer-first brand.
- Northmill Bank: Swedish digital bank offering consumer and SME banking products, savings, and lending across the Nordics. Comparable as a Nordic competitor in digital SME lending and savings accounts that also fund lending.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat6 records
Key risks6 records
Key highlights7 records
Customer concentration
Froda social profiles
Digital presenceFroda compliance and trust
Trust signalCompliance4 records
Froda financial estimates
Financial estimateRevenue estimate
Valuation estimate
Froda leadership team
Management profileNumber of profiles
Profiles6 records
Froda funding detail
Funding detailFunding overview
Funding rounds9 records
Investors4 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Froda M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Froda
What does Froda do?
Froda is a Stockholm-based Swedish fintech providing fast, data-driven business loans ranging from 5,000 SEK to 5,000,000 SEK to small and medium-sized enterprises through a fully digital application flow with BankID verification and machine-learning-based credit scoring. It also operates a deposit-funded savings account (Froda Sparkonto) and a white-label embedded finance platform (Froda Embedded) that lets banks, fintechs, neobanks, payment service providers and platforms offer Froda's lending and deposit products under their own brand via API.
Is Froda a public or private company?
Froda is a private company. It is classified as venture growth investor backed and is currently operating.
When was Froda founded?
Froda was founded in 2015. It employs 101 to 250 people.
Where is Froda based?
Froda is headquartered in Stockholm, Sweden, in the Europe region.
How does Froda make money?
Four revenue lines are on record. Interest income on business loans are the primary driver. The others are savings-account funding spread, embedded finance revenue (Loans, Installments, Funding) and broker commissions income.
Who are Froda's main competitors?
Direct peers on record are iwoca, Capital on Tap, YouLend, Wayflyer, Liberis, Uncapped, Billie and Stenn. Broad incumbents are Klarna and Northmill Bank.
Does Froda have an API?
Yes. Froda Embedded provides a developer-facing API and developer portal for partners (banks, fintechs, neobanks, payment service providers, e-commerce platforms) to integrate Froda's SME lending, installments, and funding products into their own platforms. The site references a developer portal hosted at docs.froda.se. API details such as auth method, versioning, or rate limits are not specified in the source. Developer documentation is at docs.froda.se/docs/getting-started-1.
What industry is Froda in?
Froda's product category is Digital SME Lending. Its primary akta.pro industry code is FSAKAGAJ, SME Lending Platforms & Embedded SME Credit, with a secondary code of FSAGALAA, BaaS Platforms & Sponsor Bank Enablement.