Accion commits 30 percent to Indian startups after closing $61.6 M second fund

With a clear focus on advancing financial inclusion through fintech innovation, global impact investor Accion closed its second early-stage fund, raising $61.6 million.

The fund is part of the Accion Venture Lab (now Accion Ventures) initiative, which supports early-stage fintech companies that help underprivileged people around the world.

The fund has made a noteworthy commitment to invest 30% of its capital in Indian startups. Prior investments made by Accion Venture Lab in India include projects such as TransBnk (fintech infrastructure), Olyv (previously SmartCoin, consumer lending), and Aye Finance (MSME lending).

Targeting up to 30 new fintech investments worldwide, Accion Ventures intends to distribute its funds across a variety of emerging markets, including those in Africa, South and Southeast Asia, Latin America, and the United States.

Companies with the potential to have a positive social impact and generate substantial financial returns are sought after by its investment strategy, particularly those that use digital solutions, embedded finance, and alternative data for underprivileged communities.

Since 2012, its investment arm has invested more than $59 million in 76 businesses in over 30 countries, with a number of full or partial exits among its noteworthy successes.