Accion announces a $152.5 million Digital Transformation Fund to provide growth finance to small businesses.
Global non-profit Accion launched the US$152.5 million Accion Digital Transformation Fund (ADTx), which aims to help financial institutions address 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.
With the help of Accion’s global network of banks and finance companies, the ADTx fund, overseen by Accion Impact Management, aims to enable millions of small enterprises and individuals to participate in the digital economy. 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.
It anticipates making up to twelve investments. Limited partners include Mastercard, the Austrian development bank OeEB, the Dutch entrepreneurial development bank FMO, the development finance institution of Sweden, IDB Invest, International Finance Corporation (IFC), and British International Investment (BII), the UK’s development finance institution and impact investor.
“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.
