$152.5 M Digital Transformation Fund launched by Accion to assist small businesses with growth capital
Worldwide nonprofit Accion has introduced the US $152.5 million Accion Digital Transformation Fund (ADTx), which aims to give financial institutions the growth capital and strategic support for digital transformation they need to better meet the needs of small businesses that are currently shut out of the financial system.
Established in 1961, Accion endeavors to establish an equitable and comprehensive economy for the nearly two billion individuals who have been let down by the global financial system. This is achieved by creating and expanding responsible digital financial solutions for small business owners, women, and smallholder farmers, enabling them to make well-informed decisions and enhance their quality of life. It has contributed to the development of over 230 financial service providers that reach over 350 million people by providing low-income clients with services in 75 countries.
With the help of Accion’s global network of banks and finance companies, the ADTx fund, overseen by Accion Impact Management, aims to enable millions of small enterprises and individuals to participate in the digital economy. The companies that support micro, small, and medium-sized businesses in Africa, South and Southeast Asia, and Latin America will be the main targets of investments.
It anticipates making up to twelve investments. Limited partners include Mastercard, the Austrian development bank OeEB, the Dutch entrepreneurial development bank FMO, the development finance institution of Sweden, IDB Invest, International Finance Corporation (IFC), and British International Investment (BII), the UK’s development finance institution and impact investor.
“With global poverty on the rise for the first time in decades, Accion is on a mission to bring cheaper, customer-friendly financial solutions to the nearly two billion people who are failed by the financial system. Leveraging third-party capital is a critical part of our strategy,” said Michael Schlein, president and CEO of Accion.
