ACCION VENTURES Raises $61.6 Million for Second Fund
ACCION VENTURES, the U.S.-based venture capital branch of the ACION non-profit organization, has successfully closed its second fund at $61.6 million. This marks a significant increase from its inaugural fund, which launched in 2019 with $33 million, effectively allowing it to double its investment capacity.
Focus on Fintech Startups in Africa
This funding decision comes in response to the growing interest from global investors in fintech startups across Africa, even as Silicon Valley’s overall enthusiasm for the region has begun to cool. The new fund aims to support startups that create innovative solutions for financial inclusion, crucial for fostering economic development in underserved communities.
Global Partnership for Financial Inclusion
ACCION VENTURES, previously known as Access Venture Lab, seeks to empower fintech innovators that broaden access to affordable financial services. Among its main international investors are the Dutch Development Bank’s FMO, France’s Proparco, the Ford Foundation, MetLife, and Mastercard, all of whom share a commitment to financial inclusivity.
Investment Strategy and Plans
Co-directing partner Amee Parbhoo emphasized the fund’s approach, stating that it plans to invest up to $1 million in promising early-stage startups. “The resilience and ingenuity shown by entrepreneurs over the last six years is truly inspiring,” she noted, highlighting the caliber of talent that will be supported by this fund.
Targeted Ventures Across Continents
The fund has already made several strategic investments, including in Nigeria’s Payhr payroll management platform and Kenya’s Flowcart e-commerce platform. Additionally, it has branched out to support Finfra, based in Indonesia, demonstrating its aim to establish a global presence while addressing local financial inclusion challenges.
Commitment to Emerging Markets
ACCION VENTURES plans to allocate approximately 30% of its funds to startups in India, acknowledging the country’s rapidly expanding fintech ecosystem. The remaining capital will be directed towards businesses across Africa, Southeast Asia, Latin America, and the United States, with a focus on solutions that empower small businesses and provide financial tools to underserved consumers.
Driving Sustainable Impact
Through this new fund, ACCION VENTURES is poised to play a pivotal role in shaping the future of financial inclusion. By investing in startups that prioritize social impact alongside innovation, the organization aims to reach millions worldwide who currently lack access to formal financial services. As the fintech landscape evolves, ACCION VENTURES remains a vital engine for growth, supporting entrepreneurs who are redefining the way financial services are delivered.
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