Global impact investor Accion has announced the closing of its second early-stage fund, raising $61.6 million under the name Accion Venture Lab Fund II. The fund, now operating under the rebranded Accion Ventures, aims to back promising fintech startups that are committed to expanding financial inclusion in emerging markets.
Accion, which has been investing in fintech since 2012, will use this fresh capital to support as many as 30 companies worldwide. A major part of this fund will focus on countries like India, where digital financial infrastructure is evolving at a rapid pace and opening up significant opportunities.
Strong Investor Participation
The fund has drawn support from a wide range of investors, including commercial and impact asset managers, development finance institutions, foundations, family offices, and strategic financial service companies. Among the limited partners are well-known global players such as FMO, Proparco, ImpactAssets, Ford Foundation, MetLife, and Mastercard.
The fund has already started deploying capital, with recent early investments in PaidHR (Nigeria), Foyer (USA), FinFra (Indonesia), and Flowcart (Kenya). These initial bets reflect Accion’s strategy of identifying early-stage companies solving region-specific challenges in digital finance.
India Emerges as Key Focus
According to Rahil Rangwala, Managing Partner at Accion Ventures, nearly 30% of the new fund will be directed towards India. He emphasized that India’s rapidly developing digital public infrastructure presents an unmatched opportunity to build scalable fintech solutions.
Accion’s past Indian portfolio includes companies like Aye Finance, which is preparing for a public listing, Olyv (formerly SmartCoin), a consumer lending platform, and Transbnk, a fintech infrastructure startup that raised $25 million earlier this year with Accion’s backing. These success stories highlight Accion’s ability to identify and nurture high-growth fintech ventures.
Investment Strategy Expands
Accion typically writes first institutional checks ranging between $500,000 and $1 million. It also continues to participate in follow-on funding rounds for startups that demonstrate strong growth. The fund’s investment themes include B2B marketplaces, vertical software providers, and fintech infrastructure platforms that can strengthen the broader financial services ecosystem.
Since inception, Accion’s venture arm has invested over $59 million across 76 startups in more than 30 countries. It has achieved 13 exits so far, including notable ones from India. By focusing on both financial returns and measurable social impact, Accion continues to balance profitability with purpose.
Global Perspective on Fintech
Accion’s leadership has expressed optimism about the growth of financial technology in underserved regions. Michael Schlein, President and CEO of Accion, said that with mobile technologies rapidly growing in emerging economies, there is a massive opportunity to connect small businesses and low-income households to the digital economy for the very first time.
He added that leveraging private capital for social impact remains central to Accion’s mission, with the new fund supporting startups that can deliver affordable, high-quality financial services to millions worldwide.
Building Global Innovations
Amee Parbhoo, Managing Partner at Accion Ventures, emphasized that the fund is designed to find and scale some of the world’s most innovative fintech startups. She highlighted that Accion’s global presence and local partnerships allow it to respond quickly to market trends, adapt global learnings to local contexts, and back entrepreneurs at their earliest stages.
Parbhoo added that Accion aims to remain among the first institutional investors for many startups and will continue to provide follow-on capital to ensure their growth and scalability.
Early-Stage Fintech Startups
The rise of early-stage fintech startups marks a turning point in global financial services. These young companies are often the first to test new technologies like AI-driven credit scoring, embedded finance, and digital lending platforms. In markets such as India, Indonesia, and Africa, they are crucial in bridging the gap for unbanked and underserved populations.
Accion’s latest fund places a strong emphasis on supporting these startups, which not only aim for commercial success but also hold the potential to transform access to finance for millions. With this strategy, Accion strengthens its role as a global leader in impact-driven fintech investments.
