Froda receives SEK 500m funding to support micro-entrepreneurs under EaSI programme

Froda was founded in 2015 to make it easier for small-business owners to get access to capital.

Swedish fintech company Froda has received financial backing under the Funded Instrument of the EU programme for Employment and Social Innovation (EaSI) in order to keep supporting innovative small-businesses in Sweden. The operation is co-funded by the European Union, the European Investment Bank (EIB) and the European Investment Fund (EIF). Thanks to this support, Froda is able to provide over SEK 500 million in loans to Swedish small-business owners.

Froda was founded in 2015 to make it easier for small-business owners to get access to capital. Today, it is one of Sweden’s fastest-growing fintech companies. Through digitalisation of the entire application process, Froda has been able to help over 50,000 businesses with accessing financing. The financial support from the EaSI Funded Instrument means Froda can now provide over SEK 500 million in loans to micro-entrepreneurs.

A lack of financing for small businesses is still one of the biggest hurdles for many on their growth journeys. This financial support from the EIF aligns perfectly with our vision to help entrepreneurs get financing with fair rates and terms. Through this programme, we can help even more small-business owners with financing together with the EIF, something that feels extra important right now, says Olle Lundin, CEO at Froda.

Thanks to financing supported by the EU programme for Employment and Social Innovation, fin-tech company Froda can provide more than SEK 500 million - or EUR 46 million - in loans to small businesses in Sweden and help them grow. Loan programmes like this give a significant and much-needed boost to small businesses which leads to local job creation and more social inclusion, says Nicolas Schmit, Commissioner for Jobs and Social Rights.

The EIF has been selected as the fund manager of the EaSI Funded Instrument. The EIF is part of the European Investment Bank Group, tasked with supporting Europe’s micro, small, and medium-sized enterprises.

"Our mission is to support Europe's small and medium-sized businesses by helping them to get access to financing. Froda's contribution to designing innovative financial support, specifically targeting the micro-enterprise segment, is well aligned with how we want to work with financial intermediaries to achieve our common objective: to improve the financing conditions for small enterprises", says Thomas Östros, Vice President at the EIB.

Roger Havenith, Deputy Chief Executive of EIF commented: "During difficult times, it’s always the smallest actors in the economy that struggle most. This agreement with Froda, using resources from the EU’s EaSI-programme, will allow us to channel financing to Swedish entrepreneurs, making full use of the digital potential we have today, funding innovation, strengthening competitiveness, and boosting growth and jobs."