Accion, which is non-profit microfinance institutions globally, has now revealed that its seed-stage investment initiative Accion Venture Lab is now adding around $33 Million to its initial capital pool, with the launch of a new $23 million fund, with additional funding of around $10 million from Accion.
The new funds from a group of third-party impact and commercial investors which even brings up with a Venture Lab’s total capital under the management to $43 Million, which is more than four times the initial amount.
The venture which is revealed in 2012 with the $10 million in the capital, Accion Venture Lab invests in the financial technology startups at the seed stage.
“There is strong potential for inclusive fintech startups to reach historically underserved communities while generating returns, and the oversubscription of the Accion Venture Lab fund is great validation of our early work investing in more than 40 innovative businesses operating in 30 markets. This new pool of capital enables us to scale our efforts and remain at the forefront of seed stage, investing in inclusive fintech.” Venture Lab Managing Director Vikas Raj said
Some of the investors in the Accion Venture Lab include the FMO, the Dutch entrepreinual bank, the ford foundation, the ImpactAssets Giving Fund of the Blue Haven Initiative; the Helifer Foundation; MetLife Foundation; Pace Able Foundation; Open Society Foundations; Stitching Hivos Triodos Fund; The French development agency.
“Despite progress, three billion people still have no safe or simple way to save money, get a loan to build a business, pay a bill, or protect their health and property with insurance,”Michael Schlein, President, and CEO of Accion
“Fintech startups are finding new ways to provide products and services that help these underserved people. Yet, startups lack the capital and strategic support they need to grow and scale their impact. Accion Venture Lab addresses this need,” he added.
The venture lab focuses more on the financial technology space that offers the potential to reach underserved communities. Today, those even include agriculture finance, holistic MSME finance solutions, digital lending, and personal finance management.