Two Swedish fintechs are teaming up on an embedded finance offering, which kicks off in Sweden ahead of a European rollout.

Froda, an embedded lender and Juni, a neobank for SMEs, are two well-known fintechs in their homeland of Sweden.

The pair are now teaming up, as Juni is joining Froda’s embedded lending platform, leveraging its platform and capital to lend to SMEs.

Juni, which offers mid-market businesses services including business banking, spend management, and treasury services, does not have a banking licence, so is leveraging Froda’s licence to lend.

Froda, which launched in the UK in 2023, has a credit marketplace licence from the Swedish Financial Supervisory Authority.

Juni, which raised $21.5m just four months after launching in 2021, plans to get its own banking licence over the longer-term.

Samir El-Sabini, CEO and co-founder, Juni, said: “Through our partnership, we will be able to scale faster internationally and support more businesses.”

Olle Lundin, CEO and co-founder, Froda, said both fintechs are tech-focused, meaning the tie-up was a “super-good” fit.