Accion, a global non-profit organization, has launched the US$152.5 million Accion Digital Transformation Fund (ADTx), which aims to help financial institutions meet the needs of small businesses that are currently excluded from the financial system by providing growth capital and strategic support for digital transformation.
Founded in 1961, Accion works to improve the lives of nearly two billion people who have been let down by the global financial system by developing and scaling responsible digital financial solutions for women, smallholder farmers, and small business owners.
These solutions empower them to make better decisions and live more fulfilling lives. More than 350 million people have benefited from it as more than 230 financial service firms catering to low-income clientele in 75 countries have grown as a result.
Millions of small businesses and individuals will be connected to the digital economy through the ADTx fund, which is administered by Accion Impact Management. This builds on Accion’s global experience supporting banks and financial organizations.
The companies that support micro, small, and medium-sized businesses in Africa, South and Southeast Asia, and Latin America will be the main targets of investments.
“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.
The Dutch entrepreneurial development bank FMO, the Austrian development bank OeEB, Mastercard, IDB Invest, International Finance Corporation (IFC), and Swedfund, the Swedish development finance institution, are among the limited partners of the ADTx fund, which anticipates making up to twelve investments.
Read more on Tech Gist Africa:
Africa Product Peers and Venture for Africa are launching a bootcamp for mid-level professionals
Verod-Kepple Africa Ventures (VKAV) has closed its $60 million first fund
P1 Ventures, an African VC firm, has closed the second $35 million round of its Fund II
Comments 1