Photo Credit: Accion
In a landmark initiative, Accion, the global nonprofit, has unveiled the Accion Digital Transformation Fund (ADTx), a $152.5 million fund aimed at bolstering financial institutions that cater to small businesses globally.
ADTx is set to provide growth capital and strategic support to financial institutions, enabling them to better serve small businesses that are currently underserved by the financial system. This move is part of Accion's broader mission to enhance financial inclusion and support economic development.
The fund will target companies serving micro, small, and medium enterprises (MSMEs) in regions such as South and Southeast Asia, Latin America, and Africa. These areas are home to numerous small businesses that lack access to conventional banking services.
Beyond financial backing, ADTx will offer hands-on strategic support, drawing on Accion's extensive experience in driving digital transformation to expand responsible service options for small businesses on a global scale.
The fund's initial investments include Annapurna Finance and IKF Finance in India, with expectations to invest in up to 12 companies in total. The fund's limited partners comprise prominent international development finance institutions and corporations, reflecting a collective effort to combat global financial exclusion.
Michael Schlein, President and CEO of Accion, highlighted the urgency of delivering customer-friendly financial solutions to the nearly two billion people underserved by the financial system. Njord Andrewes and Abhishek Agrawal, Managing Partners at ADTx, emphasized the potential of finance companies to scale efficiently using digital technologies and improve client engagement.
