Global non-profit Accion has launched the US$152.5 million Accion Digital Transformation Fund (ADTx), which seeks to enable financial institutions to better meet the needs of small businesses currently excluded from the financial system by providing growth capital and strategic support for digital transformation.
Founded in 1961, Accion works to create a fair and inclusive economy for the nearly two billion people who are failed by the global financial system, by developing and scaling responsible digital financial solutions for small business owners, smallholder farmers, and women, so they can make informed decisions and improve their lives. It has helped build more than 230 financial service providers serving low-income clients in 75 countries, reaching more than 350 million people.
The ADTx fund, managed by Accion Impact Management, will build on Accion’s experience supporting banks and finance companies around the world to connect millions of small businesses and individuals to the digital economy. Investments will focus on companies serving micro, small, and medium enterprises across Africa, South and Southeast Asia, and Latin America.
It expects to make up to 12 investments, while limited partners include British International Investment (BII), the UK’s development finance institution and impact investor; the Dutch entrepreneurial development bank FMO; IDB Invest; International Finance Corporation (IFC); Mastercard; OeEB, the development bank of Austria; and Swedfund, Sweden’s development finance institution.
“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,” said Michael Schlein, president and CEO of Accion.
