Non-profit Accion launches $153m growth fund for underserved SMEs
TLDR
- Accion launched the Digital Transformation Fund with $152.5 million for small businesses in underserved communities, targeting microfinance banks in Africa and beyond.
- The fund aims to provide growth capital and support to financial institutions, fostering economic development in neglected areas.
- Supported by key limited partners like BII, FMO, IFC, Mastercard, and more, the initiative will empower small businesses and drive positive change in Africa and other regions.
Accion, a non-profit organization, recently launched the Accion Digital Transformation Fund to better serve small businesses and contribute to economic development in underserved communities.
With a total of $152.5 million, the fund will offer growth capital and assistance to major financial institutions, particularly microfinance banks, focusing on underserved small businesses in Africa and other regions.
The fund has garnered support from various limited partners, including British International Investment (BII), Dutch entrepreneurial development bank FMO, IDB Invest, International Finance Corporation (IFC), Mastercard, OeEB the Development Bank of Austria, and Swedfund.
Key Takeaways
Accion plans to deploy equity investments ranging from $12 million to $15 million, supplemented by contributions from its limited partners. The fund will focus on making entirely new investments in 10 to 12 traditional financial companies, without providing follow-on investments to fintechs previously backed by the Accion Venture Lab - a $23 million fund launched five years ago providing seed capital and strategic support to innovative companies. To date, the Venture Lab has funded over 65 seed-stage and Series A startups across more than 30 countries in Africa and other regions. Notable investees include Apollo Agriculture, Lulalend, and Khazna.
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