Fintech startups receive $61.6 million in funding from Action's second investment round
Accion Ventures Closes $61.6 Million Fund to Boost Fintech Startups Worldwide
Accion Ventures, the impact investment arm of global non-profit Accion, has successfully closed its second fund, Accion Venture Lab Fund II, at $61.6 million. The fund aims to support the growth of early-stage, disruptive fintech companies, particularly those expanding financial inclusion in emerging markets.
Michael Schlein, President and CEO of Accion, sees a significant opportunity to connect small businesses and low-income consumers to the digital economy for the first time. Accion Ventures plans to invest in B2B marketplaces, vertical software providers, and fintech infrastructure firms, adopting a global portfolio and local approach to spot and respond to trends faster.
The fund has received commitments from both existing and new investors, including commercial and impact asset managers, development finance institutions, foundations, family offices, and strategic financial service companies. Limited Partners in the fund include the Dutch entrepreneurial development bank FMO, Proparco, ImpactAssets, Ford Foundation, MetLife, and Mastercard.
Accion Ventures has already deployed over $59 million across 76 startups in more than 30 countries. The most recent initial investments by the new fund are PaidHR in Nigeria, Foyer in the United States, FinFra in Indonesia, and Flowcart in Kenya.
The fund's focus is not limited to any specific region. Accion Ventures has expanded into Africa, Latin America, Southeast Asia, and the United States. In Europe, the fund has backed Companyon Analytics, a fintech startup headquartered near Munich with a second office in Innsbruck, Austria, highlighting a growth in European fintech innovation hubs.
Accion Ventures also has a particular focus on India, with about 30% of the capital earmarked for Indian startups. Accion's earlier Indian portfolio includes Aye Finance, an MSME lender now preparing for a public listing; Olyv (formerly SmartCoin), a consumer lending platform; and Transbnk, a fintech infrastructure startup that raised $25 million in August with Accion's participation.
Leveraging third-party capital to deliver social and financial objectives is a critical part of Accion's strategy, according to Michael Schlein. Accion Ventures aims to be one of the first institutional checks a company receives and maintain reserves for scaling winners. Since its inception, Accion Ventures has had 13 exits, including from Aye Finance.
Accion Venture Lab, now rebranded as Accion Ventures, has been investing in this segment since 2012. The venture capital arm seeks to provide a full suite of financial products and services to small businesses globally. With the closure of Accion Venture Lab Fund II, Accion Ventures continues its mission to drive financial inclusion and economic growth in underserved markets.
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