EIF approves extended support for Froda with EU-wide microfinancing guarantee under InvestEU

• €100 million in new lending to micro-entrepreneurs across the EU, building on an existing €50 million facility, bringing the total to €150 million.
• Transaction backed by the InvestEU programme

The European Investment Fund (EIF) has approved a new guarantee facility for Froda, unlocking €100 million in lending for micro-entrepreneurs in various EU member states. This initiative, backed by InvestEU Microfinance, Social and Entrepreneurship Guarantee Product, becomes the first EU-wide microfinancing guarantee and underscores EIF’s commitment to bridging Europe’s microfinance gap and supporting economic growth through inclusive entrepreneurship.

Froda, a leader in micro-SME financing, will leverage this partnership to enhance access to capital for underserved micro-enterprises, particularly in vulnerable segments such as female entrepreneurs and sole traders. By combining EIF’s targeted guarantees with Froda’s innovative digital lending platform, the collaboration aims to address the financing challenges faced by Europe’s smallest businesses and drive significant economic impact.

"The InvestEU program is built to provide scalable, impactful solutions for microfinancing. We’ve witnessed how EIF’s targeted guarantees in Sweden have enabled Froda to unlock growth for micro-enterprises. Expanding this model across the EU, I am confident that our strengthened partnership will build a robust, sustainable financing infrastructure that supports Europe’s entrepreneurial backbone," says Marjut Falkstedt, CEO of EIF.

The partnership with EIF positions Froda to significantly scale its digital lending capabilities and reach thousands of micro-entrepreneurs across the Nordics. Froda’s innovative platform integrates seamlessly with major partners such as Visa, enabling efficient and scalable financing solutions. This latest agreement extends a proven model, with micro-SMEs financed through Froda reporting significant growth, averaging a 131% increase in business performance within the first year of receiving financing.

"The extended support from EIF represents a pivotal step in our mission to unlock growth opportunities for SMEs throughout Europe. By enabling our Embedded partners to expand into new markets, this partnership is set to transform the landscape of SME financing. Our vision is to create a financing ecosystem that fosters cross-border expansion for both Froda and our partners," says Olle Lundin, CEO and co-founder of Froda.

The EIF’s approval of the guarantee for Froda marks a pivotal moment for microfinance in Europe. By enhancing access to finance for small businesses, this initiative will contribute to the sustainable growth of the European economy.

Background information

About EIF

The European Investment Fund(EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of sustainability, innovation, research and development, entrepreneurship, growth and employment.

About Froda

Founded in 2015, Froda set out to redefine business financing by making it accessible, efficient, and empowering for small and medium-sized enterprises. Through digital processes and technological innovation, Froda has shortened the loan process from months to minutes, making it easy for entrepreneurs to invest in their ideas and grow with ease. Today, Froda is one of Europe’s fastest-growing fintech scaleups, valued at 1.7 billion SEK. With a strategic focus on embedded financing, Froda has expanded across the Nordics, the UK, Ireland and Germany, partnering with industry leaders like Visa, Checkout.com, Lunar. Froda is a licensed credit market company under the supervision of the Swedish Financial Supervisory Authority. For more information, visit froda.se

Press contacts

EIF: Serena Sertore | s.sertore@eib.org | tel.: +352 437 970 859

Website: wwww.eif.org/ | Press Office: +352 4379 21000 — press@eib.org

Froda: Ellen Freij | ellen.freij@froda.se | +46 76 214 61 47
Website: www.froda.se/en | press@froda.se