Accion, a global nonprofit firm, has closed its second fund with a target corpus of $61.6 million to back early-stage fintech startups.
The new fund closed with commitments from both existing and new investors, including commercial and impact asset managers, development finance institutions, family offices, and strategic financial service companies.
LPs (limited partners) in the fund include Dutch entrepreneurial development bank FMO, Proparco, ImpactAssets, Ford Foundation, MetLife, and Mastercard.
The fund, which is part of impact investment-focused Accion Impact Management, also marks the rebrand of its strategy from Accion Venture Lab to Accion Ventures.
Under the new fund, the firm looks to back tech companies building solutions to promote financial inclusion around the world, as well as those with the potential to generate attractive returns, according to the firm.
The team will look for investment opportunities across Africa, South and Southeast Asia, Latin America, and the United States.
“We are excited to support the growth of incredible innovators across the globe in early-stage fintech who are using technologies ranging from satellite imagery to conversational commerce and embedded finance, leveraging the power of mobile phones and the internet to seek to deliver sustainable financial returns, alongside real-world impact for underserved people globally. We believe 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,” said Rahil Rangwala, Managing Partner, Accion Ventures.
Beyond deploying capital, Accion Ventures also provides hands-on support to companies operating across the fintech life cycle, which includes access to market expertise, board governance, and networking to open doors for limited debt and equity funding, among others.
To date, Accion Ventures has deployed $59.4 million in 76 companies across more than 30 countries, with 13 full or partial exits across all geographies, it said in a statement. In India, this includes non-banking financial companies Aye Finance and Prayaan Capital, which provide loans to micro, small, and medium-sized enterprises, among other startups.
Edited by Kanishk Singh
