Washington DC-based impact investor Accion has closed a $61.6 million second fund aimed at backing early-stage fintech startups focused on financial inclusion.
The fund is part of Accion Venture Lab, which has previously backed Indian fintech players including MSME lender Aye Finance, consumer lending platform Olyv (formerly Smartcoin), and fintech infrastructure firm Transbnk.
“Around 30% of the funds raised will be allocated for India and companies centred around India,” said Rahil Rangwala, managing partner, Accion Ventures.
Accion usually backs early-stage fintech startups, often positioning itself as the first institutional investor. The firm’s average ticket size ranges from $500,000 to $1 million. Most recently, it participated in Transbnk’s $25 million funding round in August.
Rangwala noted that the new fund will target sectors such as B2B marketplaces, vertical software firms, fintech infrastructure providers supporting large financial institutions, among others.
“In India, with the growing use cases around digital public infrastructure, I believe there is a huge opportunity opening up for innovative tech startups,” Rangwala said.
The investment firm has already recorded 13 full or partial exits from its first fund, and notably, one of these was from Gurugram-based lender Aye Finance, which is now preparing for a listing on Indian stock exchanges.
Although Accion often enters as the first institutional investor in early-stage startups, Rangwala explained that the fund will also participate in follow-on rounds as part of its broader strategy. Furthermore, with the launch of the new fund, the firm aims to invest in around 30 companies globally, while placing a strong emphasis on India.
