#United States #Washington #Fintech #financial inclusion #Accion Ventures

Accion Ventures Closes New Fund

Accion has announced a significant development in the realm of inclusive finance with the closure of its second venture lab fund, totaling $61.6 million. This new fund will focus on investing in early-stage fintech companies that cater to financially underserved communities across the globe. With a decade-long investment strategy concentrated on combining social and financial goals, the Accion Venture Lab Fund II, LP marks a pivotal shift in their strategic approach.

Managed by Accion Impact Management and facilitated through its rebranded Accion Ventures program, the fund intends to make as many as 30 new investments in promising fintech startups. The fund garnered support from a mix of existing and new investors including prominent commercial and impact investors such as FMO, Proparco, and the Ford Foundation. Among the early investments from this new fund are various firms located in diverse markets like PaidHR in Nigeria and Flowcart in Kenya.

This closure aligns with Accion’s ongoing mission to enhance financial inclusion. According to the Global Findex 2025, there are still over 1.6 billion individuals globally who do not have access to financial institutions or have inactive accounts. A staggering $5.7 trillion exists as an annual financing gap for micro, small, and medium-sized enterprises. This presents a vast market opportunity for innovative fintech companies aiming to disrupt traditional financial paradigms.

Accion Ventures aims not only to identify these trailblazing companies but also to assist them in scaling their impact. The organization recognizes the necessity for tech-driven solutions that leverage insights from local markets and global experiences. Their preferred candidates for investment are startups that utilize embedded finance and alternative data methodologies.

In the previous decade, Accion has invested $59.4 million in 76 companies across more than 30 countries. They have reported 13 full or partial exits, underscoring their effective investment strategy that balances risk with social impact. Recent successful exits include Apollo Agriculture, Lula, and Pula, demonstrating Accion's commitment to enhancing rural economies through fintech solutions.

In addition to capital support, Accion Ventures provides startups with hands-on guidance across various vital stages of development, including market access, board governance, and operational insights. Their dedicated Portfolio Engagement team is composed of seasoned investors and operators with a tech-centric background.

Accion's President, Michael Schlein, highlights a growing opportunity presented by mobile technologies in emerging markets, suggesting that this fund could connect thousands of small businesses and low-income clients with digital financial solutions. The strategic vision is clear: promote the growth of early-stage fintech companies that can deliver affordable financial services that meaningfully contribute to poverty alleviation and economic opportunity.

Rahil Rangwala, a Managing Partner at Accion Ventures, expresses excitement for the startup innovation landscape, emphasizing the diversity of techniques these fintech companies are employing, from satellite imagery to conversational commerce. The aim is to utilize the Internet's power and mobile technology to deliver sustainable financial returns alongside genuine impact for underprivileged communities.

Amee Parbhoo, also a Managing Partner at Accion Ventures, envisions building on previous successes by finding and nurturing innovative fintech companies offering a full range of financial products and services. By leveraging a global portfolio and local insights, Accion seeks to respond to emerging trends promptly, ultimately catalyzing local innovations on a global scale.

In conclusion, Accion's mission reflects a broader commitment to fostering a fair and inclusive economy. With their robust investment strategies, Accion helps support financial service providers dedicated to serving low-income populations. They have aided in constructing 285 financial institutions in 77 countries, effectively reaching 478 million individuals.

As Accion Ventures steps into a new phase with this substantial fund closure, the focus remains clear: promote financial inclusion and create opportunities for millions left behind by the traditional financial system.