Swedish digital lender Froda and UK-based fintech platform Mimo have announced a partnership to unlock up to £92 million (€108 million) in flexible lending for small and medium-sized enterprises (SMEs) across the British Isles. This collaboration addresses one of the most pressing challenges for small businesses: access to timely and adaptable financing that supports growth.

Froda, established in 2015, has built a reputation for dramatically reducing the time SMEs spend securing loans, shrinking what might traditionally have been a months-long process to mere minutes. The company’s platform integrates embedded financing directly into existing financial operations, allowing borrowers to access capital seamlessly without navigating cumbersome paperwork or switching platforms. Present in the Nordics, the UK, Ireland, and Germany, Froda’s extensive experience is complemented by partnerships with major industry players like Visa, Checkout.com, and Nordic digital bank Lunar.

Mimo, meaning “money in, money out,” has swiftly grown since its inception two years ago into a vital tool for SMEs, accountants, and bookkeepers by simplifying global payments, cash flow, and overall financial management. The platform is now used by recognised brands such as Wales Bonner and Bold Bean, alongside several UK accounting firms. The partnership with Froda enables Mimo users to access instant, flexible financing embedded directly into their existing payment and cash flow management systems. This integration means businesses no longer have to endure lengthy loan applications or switch between platforms, streamlining the path to obtaining necessary funds.

Olle Lundin, co-founder and CEO of Froda, emphasised the importance of this collaboration, stating that embedding financing options into Mimo’s platform empowers UK SMEs to access capital “without unnecessary complexity or paperwork.” Similarly, Henrik Grim, co-founder and CEO of Mimo, highlighted that the partnership helps achieve the company’s vision of simplifying financial operations for SMEs, delivering fast, flexible financing within the tools their customers already rely on.

This alliance builds on Froda’s broader ambition to close Europe’s vast SME funding gap, estimated at €400 billion. The company recently raised €20 million in a Series B funding round led by Incore Invest to accelerate its European expansion and enhance its data-driven financing solutions. This boost supports Froda’s rapid growth trajectory, including a 30% year-over-year increase in customers and new embedded partnerships averaging one per month. These developments position Froda as a key player addressing the financing challenges faced by millions of SMEs across Europe.

Moreover, Froda's innovative embedded financing model has gained traction not only through its partnership with Mimo but also in wider European markets. The company has secured landmark agreements, such as the first EU-wide microfinance partnership with the European Investment Fund (EIF), unlocking a total of €150 million in lending capacity. This partnership aims to support approximately 10,000 microenterprises across Europe, many of which have limited access to fair financing. Data from the collaboration shows SMEs financed by Froda have experienced an average growth of 131% within their first year post-financing—underscoring the impact of accessible credit.

Other recent partnerships, such as those with Nordic fintechs and banking software providers, further extend Froda’s reach and influence. Collaborations with companies like Ageras, which serves over 300,000 SME customers across Europe, and wamo, focused on card-based lending in Finland, illustrate Froda’s commitment to delivering fast, flexible financing solutions tailored to local markets. These innovations directly tackle structural funding obstacles by embedding lending in everyday financial tools SMEs use, thus eliminating traditional friction points in accessing capital.

Mimo, too, has received new investment of $8.5 million (£6.6 million) led by European early-stage tech investor Project A to continue expanding its B2B payments and financial management platform. This funding bolsters Mimo’s capacity not only to deepen its collaboration with Froda in the UK but also to explore scalability across Europe, potentially delivering over $125 million (£96.5 million) in working capital solutions to SMEs.

The partnership between Froda and Mimo underscores a significant shift in SME financing practices: the integration of embedded, flexible lending into digital financial ecosystems. This approach promises to alleviate one of the most significant barriers to SME growth—the need for quick, uncomplicated access to capital—while supporting the broader economic contribution of small businesses across the UK and Europe.

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Source: Noah Wire Services