Accion Ventures Closes $61.6 Million Fund to Boost Fintech Startups Focused on Financial Inclusion
Washington-based Impact Investor Accion Ventures has successfully closed its second fund, ACCION Venture LAB FUND II, at a total of $61.6 million. This fund is designed to back fintech startups that promote financial inclusion in emerging markets.
The new fund is part of Accion Ventures, formerly known as Venture Lab Accion, which has been active in this sector since 2012. The aim is to channel investments into companies that are making financial services more accessible, thereby fostering economic growth in underbanked regions.
Diverse Investor Backing
ACCION Venture LAB FUND II has garnered commitments from both existing and new investors, including business asset managers, impact and development finance institutions, and philanthropic foundations. Notable limited partners include FMO (Dutch Bank for Entrepreneurial Development), Propaco, ImpactAssets, the Ford Foundation, MetLife, and Mastercard.
Strategic Focus on Global Markets
The fund’s initial investments include startups like Paystack in Nigeria, Finfra in Indonesia, and Flowcart in Kenya. Accion aims to deploy the fund across up to 30 companies globally, with a particular emphasis on India’s burgeoning fintech ecosystem. Director Rahil Rangwala highlighted that approximately 30% of the capital is earmarked for Indian startups, driven by the country’s rapid advancements in digital public infrastructure.
Previous Investments and Success Stories
Accion’s previous Indian portfolio boasts successful ventures such as Aye Finance, an MSME lender poised for an IPO, consumer loan platform Olyv (formerly Smartcoin), and Transbnk, a fintech infrastructure startup that recently secured $25 million in funding.
Investment Strategy
Typically, Accion invests between $500,000 and $1 million as initial funding but is also inclined to participate in subsequent funding rounds. The new fund is particularly interested in B2B markets, vertical software providers, and fintech infrastructure companies capable of nurturing larger financial services institutions.
Global Reach and Impact
Since its inception, Accion has allocated more than $59 million across 76 startups in over 30 countries, achieving 13 exits, including Aye Finance. The fund’s geographical reach spans Africa, Latin America, Southeast Asia, and the United States, emphasizing both financial returns and measurable social impact.
Leadership Perspectives
Michael Schlein, Accion’s President and CEO, remarked, “With the huge uptick in mobile technologies in emerging economies, we see a significant opportunity to connect small businesses and low-income consumers to the digital economy for the first time.” He noted that leveraging third-party capital to deliver social and financial outcomes is a critical aspect of their strategy.
AMEE Parbhoo, General Partner of Accion Ventures, added, “With this new funding, we intend to build on our past successes to discover and scale innovative fintech companies worldwide that offer comprehensive financial products and services to small businesses.” Parbhoo emphasized the importance of a global portfolio combined with a local approach to swiftly identify and respond to emerging trends, thereby stimulating local innovation across geographies.