Accion Ventures closes $61.6 Mn second fund, aims to allocate 30% to Indian startups

Washington DC-based impact investor Accion has raised a $61.6 million fund to back early-stage fintech startups focused on financial inclusion.

This is Accion Venture Lab’s second fund. It has previously invested in Indian fintechs like MSME lender Aye Finance, consumer lending startup Olyv (formerly Smartcoin), and fintech infrastructure firm Transbnk, among others.

Accion usually backs early-stage fintech startups, often as their first institutional investor. It typically invests $500,000 to $1 million. Recently, it joined Transbnk’s $25 million funding round in August.

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The firm has made 13 full or partial exits from its first fund. A key one was Aye Finance, a Gurugram-based lender now preparing for an IPO on Indian stock exchanges.

“Around 30% of the funds raised will be allocated for India and companies centred around India,” said Rahil Rangwala, managing partner, Accion Ventures.

Rangwala said the fund will target sectors like B2B marketplaces, vertical software firms, fintech infrastructure providers supporting large financial services companies, and more.

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“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.

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