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Fintech startup investor, Accion, concludes a $61.6 million second round of funding to back early-stage ventures in the financial technology sector.

Fintech startups in emerging markets receive backing from $61.6 million early-stage fund closed by Accion, a Washington D.C.-based impact investor, for promoting financial inclusion.

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Fintech startup investments flowing with $61.6 million second fund close by Accion
Fintech startup investments flowing with $61.6 million second fund close by Accion

Fintech startup investor, Accion, concludes a $61.6 million second round of funding to back early-stage ventures in the financial technology sector.

Accion Ventures, a leading impact investor in the fintech sector, has announced the launch of a new fund aimed at expanding financial inclusion in emerging markets. The fund, which has commitments totalling $61.6 million, will target areas such as B2B marketplaces, vertical software providers, and fintech infrastructure firms.

The managing partner of Accion Ventures, Rahil Rangwala, expressed his excitement about the new fund, stating, "We see a significant opportunity to connect small businesses and low-income consumers to the digital economy."

The fund's strategy includes leveraging third-party capital to deliver social and financial objectives. Limited Partners in the fund include FMO, Proparco, ImpactAssets, Ford Foundation, MetLife, and Mastercard, among others.

Accion Ventures has already made initial investments in PaidHR in Nigeria, Foyer in the United States, FinFra in Indonesia, and Flowcart in Kenya. The venture arm of Accion has also expanded into Africa, Latin America, Southeast Asia, and the United States.

Accion Venture Lab, which has been investing in this segment since 2012, has been rebranded as Accion Ventures. The fund's previous Indian portfolio includes Aye Finance, Olyv (formerly SmartCoin), and Transbnk.

Michael Schlein, President and CEO of Accion, highlighted the importance of the new fund, saying, "Accion Ventures aims to build on its success, finding and scaling innovative fintech companies that provide a full suite of financial products and services to small businesses globally."

Accion Ventures seeks to be one of the first institutional checks a company receives and will continue to engage early, while maintaining sufficient reserves to back its winners as they scale. The fund plans to deploy the new capital across as many as 30 companies worldwide.

Notably, Aye Finance, an MSME lender, which is part of Accion's earlier Indian portfolio, is now preparing for a public listing. The venture arm of Accion has made 13 exits, including from Aye Finance.

With about 30% of the capital earmarked for Indian startups, the new fund has a particular focus on India. Accion Ventures has already deployed over $59 million across 76 startups in more than 30 countries.

The new fund seeks both financial returns and measurable social impact. As Accion Ventures continues to grow, it remains committed to its mission of improving access to financial services for underserved populations around the world.

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