Global non-profit Accion has announced the successful close of a $61.6 million fund dedicated to early-stage fintech startups targeting financially underserved people around the world.
The fund, named Accion Venture Lab Fund II, LP, will channel investments into companies providing affordable and inclusive digital financial services, with its first beneficiaries spanning Nigeria, Kenya, Indonesia, and the United States.
“Leveraging third-party capital to deliver social and financial objectives is a critical part of Accion’s strategy,” said Michael Schlein, president and CEO of Accion.
“We see a significant opportunity to connect many small businesses and low-income consumers to the digital economy for the first time.”
Who is Accion?
Accion is a global non-profit organization that has, for over six decades, focused on reshaping financial systems to include the nearly two billion people excluded from traditional banking.
Based in Washington, D.C., the group works across more than 40 countries to support innovative solutions that expand access to credit, savings, insurance, and payments.
Through its venture capital arm, Accion Ventures, the organization has built a decade-long track record of deploying capital into early-stage fintech startups that balance social impact with financial sustainability.
Accion’s Financial Missions for Global Growth
The new $61.6 million fund builds on Accion’s strategy of combining commercial returns with social impact.
According to the organization, the fund secured commitments from a mix of existing and new partners, including major players such as FMO (the Dutch entrepreneurial development bank), Proparco, ImpactAssets, Ford Foundation, MetLife Asset Management, and Mastercard Worldwide.
This mix of commercial and philanthropic backers underscores a broader shift in impact investing: capital is increasingly flowing toward startups that target the estimated 1.7 billion unbanked adults worldwide.
Beneficiary Companies of Accion’s Fund
The first round of investments demonstrates Accion’s geographic diversity and commitment to solving local financial challenges through digital innovation:
PaidHR: (Nigeria): A fintech company working to simplify payroll management and financial access for employees, particularly in small and medium enterprises where wage distribution remains a challenge.
Foyer: (United States): A platform aimed at making financial planning more accessible for underserved households in the U.S., addressing barriers such as lack of affordable advisory services.
FinFra: (Indonesia): An emerging digital credit provider that helps small businesses access working capital, a critical need in Indonesia where more than 80% of micro and small enterprises lack adequate financing.
Flowcart: (Kenya): A digital commerce enabler that helps small businesses in East Africa access payment solutions and financial tools, accelerating their entry into the digital marketplace.
A Rising Fintech Wave in Emerging Economies
Accion’s investment push aligns with the global rise of mobile-based financial services in emerging markets.
According to the GSMA’s 2023 Mobile Money Report, there are now more than 1.6 billion registered mobile money accounts worldwide, with Africa accounting for 70% of transaction volume.
This mobile-first reality provides fertile ground for fintech startups to address gaps in access to banking and credit.
“The huge uptick in mobile technologies in emerging economies means we can now scale solutions to reach millions who were previously invisible to the formal financial sector,” Schlein added.
Beyond Capital: Building an Inclusive Digital Economy
While funding is crucial, Accion emphasizes that mentorship, partnerships, and infrastructure support are equally vital for the success of early-stage fintech companies.
By connecting startups with a global network of financial institutions and investors, Accion aims to create long-term ecosystems that drive both profitability and poverty reduction.
The organization stresses that affordable digital financial services can be the difference between stagnation and growth for families and small businesses.
“When underserved individuals gain access to tools like credit or digital payments, it doesn’t just change their lives, it strengthens entire economies,” Schlein said.
Talking Points
Accion’s global efforts to expand financial inclusion are both timely and commendable, as they tackle the exclusion of nearly two billion people from the formal financial system by investing in fintech startups that use digital tools to reach low-income and underserved populations.
Its approach of blending social impact with financial sustainability sets it apart from traditional aid, creating scalable solutions that can transform small businesses and households across emerging markets.
Yet, there are valid concerns: the pressure of venture capital may push startups to prioritize profits over affordability, digital exclusion could leave the poorest further behind, and fragile economies present challenges such as weak regulations and cybersecurity risks.
Still, by leveraging entrepreneurship and technology rather than waiting on governments or traditional banks, Accion is steering the global conversation toward a more inclusive digital economy, so long as it can strike the right balance between financial returns for investors and real affordability for the people it seeks to serve.
