Swedish fintech firm Froda sets its sights on the UK market
Froda, the rapidly growing Swedish fintech company, has announced its expansion into the UK, marking another milestone in its growth trajectory. Froda has lent out more than 6.5 billion SEK since its inception and with the UK expansion, the company that reached a 1.2 billion SEK valuation this autumn, is now operating in five markets: the UK, Norway, Denmark, Finland, and Sweden.
The company’s foray into the UK market comes as a result of a strategic partnership with Sweden-born financing fintech Treyd, which has been established in the UK for a year, aimed at simplifying and enhancing growth financing for merchants involved in the import and sale of physical products. This innovative collaboration empowers Froda and Treyd to provide merchants with financing solutions for inventory purchases, offering improved predictability, scalability, and flexibility through the integration of smart credit algorithms, data analytics, and advanced technology.
“Expansion beyond the Nordics has always been a key objective for us. In the current global landscape, it is crucial for merchants to access flexible financing options. With this solution, we aim to make it easier for entrepreneurs to unlock essential growth capital”- says Olle Lundin, CEO of Froda.
Historically, accessing business financing for SMEs has posed significant challenges due to lengthy approval processes, in-person meetings, and time-consuming administrative tasks. Froda was founded with the aim of changing this and thereby contributing to a more equal and inclusive business environment, where businesses can access capital to grow through completely objective and digital assessment.
Since its inception in 2015, one of the goals has been to expand internationally to help entrepreneurs on a global scale. One step in that direction is to expand together with partners. In 2020, Froda established a dedicated business unit focusing on embedded finance, and the collaboration with Treyd exemplifies this strategic direction. In addition to Treyd, Froda has formed partnerships with renowned organizations such as Lunar, Yabie, and Worldline. Furthermore, earlier this year, Froda successfully launched a groundbreaking card-based embedded lending product in collaboration with Visa.
“With our Embedded Financing product, we can empower growth-oriented companies to offer their customers flexible financing solutions seamlessly integrated via a simple API. Our partnership with Treyd enables us to scale up and extend our financing solution to a broader network of merchants. Having already introduced the product in Sweden, Norway, and Denmark, we eagerly anticipate its reception in the UK” says Stella Snickare, VP of Financing as a Service at Froda.
Peter Beckman, CEO of Treyd, comments: “Since launching in the UK last August, we’ve been privileged to already work with more than 100 brilliant British SMEs – the demand for our solution has been, frankly, astonishing. So we’re really pleased to be extending our partnership with Froda, a fellow fast-growing Swedish fintech, to help us to serve even more merchants in the UK market.”
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