Accion launches $152.5m fund to invest in digital transformation
Accion launches $152.5m fund to invest in digital transformation
Accion has announced the launch of the Accion Digital Transformation Fund.
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Global nonprofit Accion has announced the launch of the Accion Digital Transformation Fund (ADTx). The $152.5 million fund seeks to enable financial institutions to better meet the needs of small businesses that are currently excluded from the financial system by providing growth capital and strategic support for digital transformation.
The fund is managed by Accion Impact Management. Investments will focus on companies serving micro, small, and medium enterprises across South and Southeast Asia, Latin America, and Africa.
Alongside equity and quasi-equity investments, companies will receive hands-on strategic support.
Limited partners in the fund include British International Investment, the UK's development finance institution and impact investor; the Dutch entrepreneurial development bank FMO; IDB Invest; International Finance Corporation; Mastercard; OeEB the Development Bank of Austria; and Swedfund, Sweden's development finance institution.
Michael Schlein, president and CEO of Accion, said: "With global poverty on the rise for the first time in decades, Accion is on a mission to bring cheaper, customer-friendly financial solutions to the nearly two billion people who are failed by the financial system. Leveraging third-party capital is a critical part of our strategy. With the Accion Digital Transformation Fund, we expect to connect millions more small businesses to the digital economy, providing high-quality, affordable financial services that help reduce poverty and create opportunity."
Njord Andrewes, managing partner of the Accion Digital Transformation Fund, said: "We believe finance companies have an enormous opportunity to scale efficiently using digital technologies and better client engagement. Through capital, active board participation, shareholder engagement, and strategic support we seek to drive the digital transformation agenda of these companies, enabling them to better serve small businesses."
Abhishek Agrawal, managing partner of Accion Digital Transformation Fund, added: "We believe the level of commitment from our high-calibre limited partners speaks to the urgency of our work. We look forward to working with more financial institutions to bring affordable, high-quality financial services to small businesses globally."
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