Froda receives funding under the EaSI programme – providing another SEK 500 million to Swedish micro-entrepreneurs

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.

About the European Union Programme for Employment and Social Innovation (EaSI)
Under the EU Programme for Employment and Social Innovation (EaSI), the European Union supports microfinance and social enterprise finance with an overall envelope of EUR 193 million for the 2014-2020 period. The programme aimed to increase access to finance for micro-enterprises, including the self-employed and vulnerable persons, and social enterprises, thereby fostering job creation and social inclusion.

The EaSI Funded Instrument is a EUR 200 million fund launched in October 2019 under EaSI and can provide loans to financial intermediaries to support lending to micro-enterprises and social enterprises until the end of 2023. It is one of several EU financial instruments deployed under the EaSI Programme to support microfinance and social entrepreneurship. The EaSI Funded Instrument is a partnership between the European Union, the European Investment Bank and the European Investment Fund.

EaSI will be succeeded by the InvestEU instrument for Microfinance and Social Enterprises, also implemented by the EIF.

About Froda
Froda was founded in 2015 with a clear vision: to revolutionize the banking experience for entrepreneurs, by making it easy and affordable for them to invest in their ideas. Through digitalization of the entire application process, Froda has made it possible to offer financing with great rates and terms to even more businesses, with solutions that are tailored specifically to them and their unique situation. Today, Froda is one of the fastest-growing tech companies in Sweden, having helped over 50,000 customers on their growth journeys. Froda is a regulated credit institution under the supervision of Finansinspektionen (the Swedish Financial Supervisory Authority).