Press

Two of Sweden’s fastest-growing fintech companies are joining forces in a partnership to provide easier and more accessible growth financing for retailers that import goods. A unique, simple, and completely digital credit scoring process enables small and medium-sized businesses to quickly get financing with fair terms and rates. The partnership will launch in Sweden and the UK, with the ambition to expand across Europe.

Both Froda and Treyd have grown immensely the past few years, thanks to their financing solutions for growing companies. As opposed to bigger companies, small and medium-sized retailers lack easy access to capital – a critical component for growth. Treyd now becomes the first partner to join Froda’s new solution Embedded financing, an API-based loan engine which through smart credit-scoring algorithms and technical integration increases predictability, scalability, and flexibility in the end-product.

– We share the vision of helping small and medium-sized businesses grow. Our solution, with Froda as a financier, can help even more retailers by letting them sell first and pay the suppliers later, while maintaining working capital for use in operations in order to grow, says Peter Beckman, CEO at Treyd.

The past year, both Froda and Treyd have seen immense growth by 100 percent and 700 percent respectively. The partnership enables the two companies to scale up operations, as both Froda’s and Treyd’s financing solutions become available to even more retailers through the launch in Sweden and the UK in the first quarter of 2023, with the ambition to expand across Europe.

– With Embedded financing, we can help fast-growing companies offer flexible financing solutions to their customers. Before we received our credit institute license from the Swedish FSA, the lack of smart and flexible capital was stopping us from growing as fast as we wanted. Now, we can help Treyd avoid the same challenge. We are happy to launch this product together with Treyd, as they share our vision to better help small and medium-sized businesses, says Olle Lundin, CEO at Froda.

About Froda
Froda was founded in 2015 with a clear vision: to revolutionize the banking experience for entrepreneurs and small-business owners, 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. A smarter business loan, plain and simple.

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).

About Treyd
Treyd is a fintech company that helps merchants grow by selling first and paying suppliers later. With a simple and accessible financing solution for purchasing inventory, merchants can get better supplier terms, free up working capital to invest in growth and switch to cheaper and greener freight options. Treyd has 52 employees with head office in Stockholm and offices in London and Cairo. treyd.io

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).

Froda and Yabie are two of Sweden’s fastest-growing fintech companies. Now, they are entering into a new partnership to launch Yabie Loans, a new service for entrepreneurs looking to invest in their ideas and grow their business. The service is based on Froda’s tech platform Financing as a Service.

Many young companies struggle to get financing for bigger purchases during their low season, for covering unforeseen expenses, or to invest in their future. This partnership means Yabie can offer business loans with great rates and terms directly to their customers through Froda.

– Our vision is to make financing with fair rates and terms more accessible. This partnership is an important step towards that goal. Through our tech platform Financing as a Service, we can offer financing to even more small-business owners via our partners. The focus Yabie has on innovation and accessibility, and its ambition to make everyday life easier for entrepreneurs, are qualities that we share and value equally at Froda, says Olle Lundin, CEO at Froda.

At a time when the economy is facing headwinds, financing becomes even more important for startups and small businesses to stay afloat and invest for the future. The partnership between Yabie and Froda gives entrepreneurs access to capital via a full-service solution which is also integrated in their daily operation through Yabie’s checkout system.

– We are very happy to be able to launch Yabie Loans, building out another part of our ecosystem that is tailored specifically to small-business owners. Through this partnership, our customers will get the opportunity to apply for financing with reasonable rates and terms directly through our product. We know that getting financing for a small business can be a complicated and painful process – a process that we want to democratize, says Mathias Plank, CEO at Yabie.

Yabie Loans was developed through Froda’s tech platform Financing as a Service. The platform gives payment processing firms, neobanks, enterprise resource planning companies, and service companies, the opportunity to offer loans to their customers. Yabie Loans will launch on November 1 and be available to all of Yabie’s customers.

About Froda
Froda was founded in 2015 with a clear vision – to revolutionize the banking experience for entrepreneurs by making it easy and affordable to invest in their ideas. Today, Froda is one of the fastest-growing fintechs in the Nordics with large international growth plans. Froda is a fintech company with the ambition to help small businesses grow.

Froda is a regulated credit institution with government deposit guarantee and under the supervision of the Swedish Financial Supervisory Authority.

About Yabie
Yabie is a Swedish fintech company that has developed a flexible and mobile Point-of-Sale and Payments solution. It began its journey in 2017 when Yabie was tasked with developing a payments solution for all the Apple Certified retail stores in the Nordics. Since then, its client base has grown to over 5,000 businesses. Yabie has since its inception raised over 500 million SEK in venture capital from investors, including Creades, Swedbank, NFT Ventures, and Brightly Ventures. The company was founded by the serial entrepreneur Mathias Plank, who serves as its CEO. Fun fact: يبيع (Yabie) means “to sell” in Arabic