WASHINGTON, May 15, 2024
/PRNewswire/ -- Global nonprofit Accion announces 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 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 and 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 and have access to Accion's
deep-rooted expertise driving digital transformation to expand
their responsible service options for small businesses globally.
Since 1961, Accion has helped build more than 230 financial service
providers serving low-income clients in 75 countries, reaching more
than 350 million people.
Initial investments by the fund include Annapurna Finance and
IKF Finance in India, with up
to 12 total expected. Limited partners in the fund 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.
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, 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, Accion Digital Transformation Fund, added: "We believe the
level of commitment from our high-caliber 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."
About Accion
Accion is a global nonprofit on a mission
to create a fair and inclusive economy for the nearly two billion
people who are failed by the global financial system. We develop
and scale responsible digital financial solutions for small
business owners, smallholder farmers, and women, so they can make
informed decisions and improve their lives. Through targeted
investment strategies, advisory solutions, and expert thought
leadership, we work with local partners to develop and scale
cheaper, more accessible, and customer-friendly financial
solutions. Since 1961, Accion has helped build more than 230
financial service providers serving low-income clients in 75
countries, reaching more than 350 million people. More at
www.accion.org.
About Accion Impact Management
Accion Impact
Management is Accion's platform for impact investments in financial
inclusion leveraging third-party capital. It is a registered
investment advisor with the U.S. Securities and Exchange Commission
(SEC). Please note that SEC registration does not imply a certain
level of skill or training. Accion Impact Management is staffed by
a team of expert investment advisors, working to harness the
capital markets to provide high-quality and affordable financial
services to people who are currently excluded from the financial
system. More at https://accion.org/accionimpactmanagement.
Media Contact
Thessa
Mooij
Director of Public Relations
tmooij@accion.org
+1.917.631.2518
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SOURCE ACCION