Accion has closed a $61.6 million fund aimed at financing early-stage fintech companies that are working to expand access to financial services for people and small businesses usually overlooked by traditional institutions.
The fund, named Accion Venture Lab Fund II, LP, is managed under Accion Impact Management’s venture strategy, now rebranded as Accion Ventures.
It is the continuation of a decade-long initiative to back startups providing affordable and inclusive financial tools. Since 2012, the strategy has invested $59.4 million in 76 companies across 39 countries, with 13 successful exits.
The new fund brings in commitments from a mix of old and new investors, including development finance institutions, family offices, asset managers, foundations, and financial service firms. Among them are FMO, Proparco, ImpactAssets, Ford Foundation, MetLife Asset Management, and Mastercard Worldwide.
Some of the first investments under this fresh round have already been made. PaidHR in Nigeria, Foyer in the United States, FinFra in Indonesia, and Flowcart in Kenya are among the startups receiving early backing.
Accion Ventures is focusing on fintech solutions that can make a difference for the 1.6 billion people globally who remain unbanked or underbanked, and the $5.7 trillion annual credit gap faced by small businesses.
The fund is designed not only to provide capital but also to give startups operational support, governance guidance, and connections to networks that are often closed off to early-stage firms.
Michael Schlein, president and CEO of Accion, explained the rationale behind the move:
“With the huge uptick in mobile technologies in emerging economies, we see a significant opportunity to connect many small businesses and low-income consumers to the digital economy for the first time. Leveraging third-party capital to deliver social and financial objectives is a critical part of Accion’s strategy.
“This fund seeks to support the growth of early-stage, disruptive companies providing high-quality, affordable financial services that can help reduce poverty and create opportunity for millions of people globally.”
Rahil Rangwala, managing partner, Accion Ventures, emphasised the role of innovation in the fund’s direction:
“We are excited to support the growth of incredible innovators across the globe in early-stage fintech who are using new technology ranging from Gen AI to satellite imagery and embedded finance, leveraging the power of mobile phones and the internet to deliver sustainable financial returns, alongside real world impact for underserved people globally.
“We have a strong pipeline and team in place and will continue to leverage our networks to deliver quality, affordable financial services for small businesses and consumers globally.”
Managing Partner, Amee Parbhoo, noted how Accion Ventures plans to use the fund:
“With this new funding, we will build on our success to date, finding and scaling some of the world’s most innovative fintech companies that provide a full suite of financial products and services to small businesses globally.
“Our global portfolio and local approach mean we can spot and respond to trends faster, driving local innovations on a global scale, and share learnings across geographies. We aim to be one of the first institutional checks a company receives and will continue to engage early, while maintaining sufficient reserves to back our winners as they scale.”
Accion Ventures operates across Africa, South and Southeast Asia, Latin America, and the United States. Its strategy is to identify startups with a deep understanding of their local markets, then provide the financial backing and strategic input needed to grow beyond their immediate environment.
Accion fintech fund supports the growing momentum of inclusive fintech as both a social need and a market opportunity. The venture aims to back innovators capable of bolstering financial access on a global scale.
