Washington, D.C.-based impact investor Accion has raised a new $61.6 million fund to support early-stage fintech startups that focus on financial inclusion.
This is the second fund from Accion Venture Lab.
The firm has already invested in Indian fintechs such as Aye Finance (MSME lending), Olyv (formerly Smartcoin, consumer lending), and Transbnk (fintech infrastructure).
Accion usually invests in fintech startups at a very early stage, often being their first institutional investor. Its typical investment ranges from $500,000 to $1 million. Most recently, in August, it took part in Transbnk’s $25 million funding round.
From its first fund, the firm has made 13 full or partial exits. One of the most notable was Aye Finance, a Gurugram-based lender that is now preparing for an IPO on Indian stock exchanges.
“Around 30% of the funds raised will be allocated for India and companies centred around India,” said Rahil Rangwala, managing partner, Accion Ventures.
Rangwala said the fund will target sectors like B2B marketplaces, vertical software firms, fintech infrastructure providers supporting large financial services companies, and more.
“In India, with the growing use cases around digital public infrastructure, I believe there is a huge opportunity opening up for innovative tech startups,” Rangwala said.
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