Froda and Juni are two of Sweden's leading fintech companies. The two billion-euro companies are now entering into a partnership when Juni joins Froda Embedded. The partnership involves a long-term investment in embedded finance and begins with Juni integrating with Froda's technical platform and being able to use Froda's capital pool.

The companies share the vision of helping as many entrepreneurs as possible to access finance on good terms. There are 25 million small and medium-sized enterprises (SMEs) in Europe, yet lack of access to finance is one of the biggest obstacles for smaller companies looking to grow. The partnership aims to make finance more accessible and thus help more people to grow.

- The journey that Juni has made and how far they have come in a short time is very impressive. I have followed the company since the start and therefore it is extra fun that they now choose Froda Embedded to continue to scale and that Froda can be part of their growth journey, says Olle Lundin, CEO and co-founder of Froda.

Since its launch in 2021, Froda Embedded has become one of Europe's leading providers of embedded finance solutions for businesses. Using the company's technology platform, partners can either integrate Froda's services and offer them to their customers, or use Froda's financing to build their own financing solutions. Froda's license also makes it easy for partners to increase lending and scale quickly in Europe.

Neobank Juni has come a long way since its launch in 2020 with the ambition to create the global corporate bank of the future. Juni gives businesses and finance teams access to modern banking services, expense management, financing and automated accounting, all in one platform. With low interchange fees and flexible financing, Juni wants to make it easier for companies operating globally. Future plans include obtaining a banking license for further expansion.

- Froda's credentials and expertise in SME lending make them a perfect partner for us. We were looking for a partner that, like us, has a focus on modern solutions and technology. Through our partnership, we will be able to scale faster internationally and support more entrepreneurs," said Samir El-Sabini, CEO and co-founder of Juni.

Both Froda and Juni were founded with the vision of helping entrepreneurs with various financial solutions. The partnership initially means that Froda will be a financing partner and that Juni will have the opportunity to use Froda's capital pool for its services through embedded financing.

About Juni
Juni was founded in 2020 by Samir El-Sabini and Anders Orsedal with the ambition to create the global corporate bank of the future. Listed as the fastest growing fintech startup in Europe in 2021, Juni gives businesses and finance teams access to modern banking services, expense management, financing and automated accounting - all in one platform.

For more information about Juni, please visit: www.juni.co

About Froda
Froda was founded in 2015 with the ambition to redefine business finance by making it more accessible and efficient for SMEs. Froda creates opportunities for all entrepreneurs, regardless of background, to realize their business ideas. Using digital processes and technological innovation, Froda has revolutionized the loan process, shortening it from months to minutes - with a focus on providing fast, fair and inclusive financing.

Today, Froda is one of Europe's fastest growing tech companies, backed by investors such as Karl-Johan Persson, Nicklas Storåkers and Victor Jacobsson. In 2021, Froda launched an embedded finance initiative, through which the company has expanded to the Nordic region, the UK and Germany, and entered into partnerships with Visa, Lunar and Checkout.com, among others. As a credit market company, Froda is under the supervision of the Swedish Financial Supervisory Authority.

Read more about Froda

• Froda receives EIF guarantee enabling SEK 560 million in new loans to micro-entrepreneurs in Sweden, Denmark and Finland.
• The transaction is supported by the European Union's InvestEU program.
• Through the program, Froda can offer beneficial microloans to around 3,500 small businesses.

Froda has received increased support from the European Investment Fund (EIF) through the InvestEU program, enabling Froda to lend an additional half a billion SEK to small businesses and promote growth in the Nordic region. A guarantee from the EIF that allows Froda to offer loans with more favorable terms to companies in Sweden, Denmark and Finland with up to nine employees.

"Access to finance remains a problem across the EU, especially for the smallest businesses," said EIF Managing Director Marjut Falkstedt. "Through specific initiatives like this InvestEU guarantee, Froda can improve its lending conditions and reach out to a riskier segment of micro-entrepreneurs because we guarantee part of the risk. This is a clear example of how EU funding can help the most vulnerable entrepreneurs, and we are pleased that the partnership with Froda is contributing to this."

The EIF guarantee will allow Froda to offer even better conditions and to reach new market segments. The European support will specifically benefit microloans in the high-risk start-up segment, where loan requirements have previously been too high. This will lead to improved access to finance across the Nordic region.

"The partnership with the EIF is fully in line with our vision to help as many small businesses as possible with financing. Through the program, we can help even more entrepreneurs, especially micro-enterprises, a segment that has historically been difficult to lend to. In the first weeks, we have seen that over 50 percent of our customers have already received support through the program," says Olle Lundin, CEO and co-founder, Froda.

There are 25 million small and medium-sized enterprises (SMEs) in Europe and a lack of available finance is one of the main barriers to growth. The EIF's InvestEU programme aims to help Europe's micro-businesses access the necessary finance through partnerships with companies that are experts in lending to micro-businesses. Froda expects to help around 3 500 micro-enterprises through the program, with an average loan amount of around SEK 160 000 (€13,838), in the three Nordic countries where the guarantee will be implemented.

Background information
European Investment Fund (EIF): the EIB is the European Union's long-term financing institution, owned by the EU Member States. The Bank provides long-term finance for economically viable investments to contribute to EU policy objectives.

The InvestEU program provides the European Union with essential long-term financing by mobilizing significant private and public funds to support a sustainable recovery. The programme also helps mobilize private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof many different EU financial instruments previously available to support investment in the European Union, making it easier, more efficient and more flexible to finance investment projects in Europe. The programme consists of three parts: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through implementing partners who invest in projects with the help of the €26.2 billion EU budget guarantee. The entire budget guarantee supports the investment projects of the Implementing Partners, increasing their risk-bearing capacity and thus mobilizing at least €372 billion of additional investment.

Froda was founded in 2015 with the ambition to redefine business finance by making it more accessible and efficient for SMEs. Froda creates opportunities for all entrepreneurs, regardless of their background, to realize their business ideas. Using digital processes and technological innovation, Froda has revolutionized the loan process, shortening it from months to minutes - with a focus on providing fast, fair and inclusive financing. Today, Froda is one of Europe's fastest growing tech companies, backed by investors such as Karl-Johan Persson, Nicklas Storåkers and Victor Jacobsson. In 2021, Froda launched an embedded finance initiative, through which the company has expanded to the Nordic region, the UK and Germany, and entered into partnerships with Visa, Lunar and Checkout.com, among others. As a credit market company, Froda is under the supervision of the Swedish Financial Supervisory Authority. Read more about Froda

In recent years, Froda has experienced strong growth and increased focus on embedded finance. Visma Finance is now joining Froda Embedded as another partner. The collaboration means that the companies together launch a new product within invoice loans.

Froda's technology platform, Froda Embedded, enables partners to offer business loans and new types of financing solutions to their customers. The partnership with Visma Finance provides small business owners with greater flexibility through a new type of loan product. Unlike a regular business loan, the loan is not paid to the customer but is used to pay the invoice automatically.

- "With Froda Embedded, we can give more actors the opportunity to offer financing to their customers based on their needs. This contributes to our vision of helping as many entrepreneurs as possible to access financing," says Olle Lundin, CEO and co-founder of Froda.

Visma Finance is one of Sweden's leading players in built-in invoice financing for small and medium-sized companies. Through the partnership, entrepreneurs who have received an invoice from a supplier using Visma Finance can split the payment of the invoice through an invoice loan, while the invoicing company does not have to wait for payment.

- "We are very excited about the partnership with Froda and the opportunities it brings to us and our customers. We strive to be a complete solution for small business owners and Froda has a market-leading product for lending to small business owners that we look forward to offering," says Martin Källum, Chief Product Officer at Visma.

About Froda

About Visma Finance
As part of the Visma Group, Visma Finance AB is a leader in solutions for embedded corporate finance in business and financial systems in Sweden. Read more: vismafinance.se

Visma is a leading provider of business-critical software in the cloud, with a turnover of EUR 2.06 billion in 2022, 15,000 employees and 1.7 million customers in Europe and Latin America. By simplifying and automating the work of businesses and organizations of all sizes, we enable a more efficient and prosperous society. Visit us at visma.se