Accion completes $61.6M venture Lab Fund II for underserved financial services

The fund closed with commitments from both existing and new investors, including commercial and impact asset managers, development finance institutions, foundations, family  offices, and strategic financial service companies. 

Global nonprofit organization Accion has completed the final closing of its second Venture Lab Fund, raising $61.6 million to support early-stage fintech companies serving financially excluded populations worldwide.

The organization focuses on creating inclusive financial systems for approximately two billion individuals who lack access to traditional banking services. Through Accion Ventures, the nonprofit deploys investment capital into emerging fintech startups operating across multiple international markets.

Venture Lab Fund II represents the continuation of Accion's decade-long investment approach, combining social impact objectives with venture capital returns through early-stage company funding. The fund attracted support from a diverse investor base spanning commercial asset managers, impact investors, development finance institutions, philanthropic foundations, family offices, and strategic financial services corporations.

Key contributors to the fund include Dutch development bank FMO, French development finance institution Proparco, impact investment platform ImpactAssets, Ford Foundation, MetLife Asset Management, and global payments company Mastercard Worldwide.

The fund has already initiated investments in several portfolio companies, including Nigerian payroll platform PaidHR, US-based Foyer, Indonesian financial infrastructure company FinFra, and Kenyan commerce platform Flowcart.

According to Michael Schlein, Accion's president and chief executive officer, the proliferation of mobile technology across emerging markets presents substantial opportunities to integrate small businesses and low-income individuals into the digital financial ecosystem for the first time.

"The expansion of mobile technologies in developing economies creates significant potential to connect previously excluded populations with digital financial services," Schlein explained. "Utilizing external capital to achieve both social impact and financial returns forms a cornerstone of Accion's strategic approach. This fund aims to accelerate the development of innovative early-stage companies that deliver accessible, cost-effective financial solutions capable of reducing poverty and generating economic opportunities for millions globally."

The investment strategy targets companies developing solutions that address financial inclusion challenges while maintaining commercial viability and scalability potential across underserved markets worldwide.