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Liza Curcio-Rudy

Resources for early-stage startups to take a gender-inclusive approach to hiring, fundraising, governance, and more

Article

<span data-contrast="none">Our portfolio engagement team has published more than 30 resources to help early-stage fintech founders build strong teams and sustainable, impactful businesses. </span><span data-contrast="none">While the availability of high-quality content for startup founders has ballooned in recent years, few resources </span><span data-contrast="none">acknowledge the unique needs that women and other underrepresented founders, employees, and end-customers</span><span data-contrast="none"> have; moreover, these resources are not specifically catered to fintech startups. That’s why we’ve refreshed five previously published resources </span><span data-contrast="none">to incorporate a perspective on the role that gender plays in hiring, fundraising, governance, and more. Here are the five resources we’ve decided to republish and why: </span><span data-ccp-props="{&quot;335551550&quot;:6,&quot;335551620&quot;:6}"> </span>
<h3><a href="https://content.accion.org/wp-content/uploads/2023/03/Best-Board-Practices.pdf" target="_blank" rel="noopener noreferrer">How to leverage a startup board</a></h3>
<span data-contrast="none">Board diversity has taken center stage over the last couple of years, with new mandates emerging (and in some cases repealed) across </span><a href="https://www.gibsondunn.com/sec-approves-new-nasdaq-board-diversity-rules/" target="_blank" rel="noopener noreferrer"><span data-contrast="none">NASDAQ</span></a><span data-contrast="none">, the </span><a href="https://www.nytimes.com/2022/05/19/business/california-board-diversity-women.html#:~:text=Introduced%20in%202018%2C%20S.B.%20826,to%20comply%20risked%20financial%20penalties." target="_blank" rel="noopener noreferrer"><span data-contrast="none">State of California</span></a><span data-contrast="none">, </span><a href="https://www.cnbc.com/2020/01/23/goldman-wont-take-companies-public-that-dont-have-at-least-one-diverse-board-candidate-ceo-says.html" target="_blank" rel="noopener noreferrer"><span data-contrast="none">Goldman Sachs</span></a><span data-contrast="none">, and other entities. While studies have shown that diverse boards outperform those lacking in diversity, most startup board members are venture capitalists, which are 85 percent white and male. With that in mind, how can founders go about crafting a representative board, and why should they? <a href="https://content.accion.org/wp-content/uploads/2023/03/Best-Board-Practices.pdf" target="_blank" rel="noopener noreferrer">We’ve updated this resource</a> to tell you just that. </span><span data-ccp-props="{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:360}"> </span>
<h3><a href="https://content.accion.org/wp-content/uploads/2023/03/Equity-fundraise-guide.pdf" target="_blank" rel="noopener noreferrer">Series A fundraise guide</a></h3>
<span data-contrast="none">It’s well-documented that women face outsized challenges raising venture capital. They often start with smaller investor networks, </span><a href="https://hbr.org/2017/06/male-and-female-entrepreneurs-get-asked-different-questions-by-vcs-and-it-affects-how-much-funding-they-get" target="_blank" rel="noopener noreferrer"><span data-contrast="none">get asked different questions</span></a><span data-contrast="none">, and encounter other biases as they navigate the fundraising process. In the eight women-focused events we’ve hosted with </span><span data-contrast="none">more than 80</span><span data-contrast="none"> women fintech founders </span><span data-contrast="none">at</span><span data-contrast="none">tending</span><span data-contrast="none"> from around the world, we’ve also seen that many women founders tend to emphasize their traction to date rather than their long-term vision. At the seed stage, while traction is useful, it’s critical for founders to communicate the opportunity in front of them effectively. <a href="https://content.accion.org/wp-content/uploads/2023/03/Equity-fundraise-guide.pdf" target="_blank" rel="noopener noreferrer">We’ve updated our original resource</a> to acknowledge these obstacles and provide guidance on how to navigate them. </span><span data-ccp-props="{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:360}"> </span><span data-ccp-props="{}"> </span>
<h3><a href="https://content.accion.org/wp-content/uploads/2023/03/Hiring-Resource.pdf" target="_blank" rel="noopener noreferrer">Hiring manager guide</a></h3>
<span data-contrast="none">A growing body of research has shown that when team members bring diverse backgrounds and perspectives to the</span><span data-contrast="none"> table in an inclusive environment, their companies make </span><a href="https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/delivering-through-diversity" target="_blank" rel="noopener noreferrer"><span data-contrast="none">better decisions and generate more revenue</span></a><span data-contrast="none"> than homogenous competitors. Diversity doesn’t just happen, though. It takes ample and sustained commitment from leadership. We often see early-stage founders prioritize speed in the hiring process, assuming that they can tackle diversity at a later stage. Over time, though, as teams codify their values and establish norms, it becomes </span><a href="https://builtin.com/diversity-inclusion/small-business-diversity-and-inclusion-hiring-strategy" target="_blank" rel="noopener noreferrer"><span data-contrast="none">more</span></a><span data-contrast="none"> and </span><a href="https://www.wired.com/2017/03/welcome-to-diversity-debt-the-crisis-that-could-sink-uber/" target="_blank" rel="noopener noreferrer"><span data-contrast="none">more</span></a><span data-contrast="none"> difficult to attract and support heterogeneous candidates. </span><span data-contrast="none">That said, how can startup founders ensure that their hiring processes are equitable from the start? Read <a href="https://content.accion.org/wp-content/uploads/2023/03/Hiring-Resource.pdf" target="_blank" rel="noopener noreferrer">this addendum</a> to our hiring manager guide for five suggestions. Remember, though, hiring is only one piece of the puzzle for ensuring that diverse teams thrive in the workplace.</span><span data-ccp-props="{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:360}"> </span><span data-ccp-props="{}"> </span>
<h3><a href="https://content.accion.org/wp-content/uploads/2023/03/How-to-successfully-launch-an-employee-engagement-survey.pdf" target="_blank" rel="noopener noreferrer">How to launch an employee engagement survey</a></h3>
<span data-contrast="none">Over the last decade, we’ve worked with multiple portfolio companies to conduct, analyze, and interpret employee engagement surveys. Regardless of the results, these surveys help founders understand employee sentiment and identify concrete steps to strengthen company culture. However, employees of </span><span data-contrast="none">different genders often experience their workplaces differently. In <a href="https://content.accion.org/wp-content/uploads/2023/03/How-to-successfully-launch-an-employee-engagement-survey.pdf" target="_blank" rel="noopener noreferrer">this</a></span><span data-contrast="none"> resource, we’ve added a survey question on <a href="https://content.accion.org/wp-content/uploads/2023/03/Hiring-Resource.pdf">Hiring Resource</a>employee gender, allowing founders to disaggregate data on employee happiness within the workplace and determine whether there are disparities across gender lines.</span><span data-ccp-props="{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:360}"> </span><span data-ccp-props="{}"> </span>
<h3><a href="https://content.accion.org/wp-content/uploads/2023/03/Operational-Metrics-Reporting.pdf" target="_blank" rel="noopener noreferrer">Operational metrics and reporting</a></h3>
<span data-contrast="none">Women continue to be disproportionately excluded by the formal financial system. In developing economies, they’re </span><a href="https://globalfindex.worldbank.org/sites/globalfindex/files/2018-04/2017%20Findex%20full%20report_0.pdf" target="_blank" rel="noopener noreferrer"><span data-contrast="none">9 percent less likely than men to have a bank account and, while women-owned businesses make up 23 percent of all MSMEs, they account for 32 percent of the financing gap.</span></a><span data-contrast="none"> This presents a massive opportunity for fintechs that are able to connect with women effectively. To reach more women customers, startup founders need to understand how certain operating metrics vary across gender lines. For example, are your women customers all coming from specific marketing channels? How do customer acquisition costs and lifetime value differ between men and women? Startups that can answer these questions (among others) will be best positioned to serve more women.</span><span data-ccp-props="{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:360}"> </span>

<span data-contrast="none">We hope these resources will help early-stage founders adopt gender-inclusive practices that strengthen their teams and deepen their impact. Feel free to pass them over to your portfolio companies, team members, and any other stakeholders willing to take more action toward gender inclusivity in their companies. To learn more about Accion Venture Lab, follow us on </span><a href="https://twitter.com/AccionVLab" target="_blank" rel="noopener noreferrer"><span data-contrast="none">Twitter</span></a><span data-contrast="none"> and </span><a href="https://www.linkedin.com/showcase/accion-venture-lab/" target="_blank" rel="noopener noreferrer"><span data-contrast="none">Li</span><span data-contrast="none">nkedIn</span></a><span data-contrast="none">. </span><span data-ccp-props="{&quot;335551550&quot;:6,&quot;335551620&quot;:6}"> </span>

Five ways for fintech startups to build gender inclusivity

Elizabeth Winters

jihan

<p><img class="alignleft wp-image-27806" src="https://content.accion.org/wp-content/uploads/2023/03/jihan-abass-founder-ceo-lami.jpg" alt="Jihan Abass, Lami" width="400" height="600" srcset="https://content.accion.org/wp-content/uploads/2023/03/jihan-abass-founder-ceo-lami.jpg 750w, https://content.accion.org/wp-content/uploads/2023/03/jihan-abass-founder-ceo-lami-200x300.jpg 200w, https://content.accion.org/wp-content/uploads/2023/03/jihan-abass-founder-ceo-lami-683x1024.jpg 683w" sizes="(max-width: 400px) 100vw, 400px" />Jihan Abass comes from a family of entrepreneurs, setting her on a path to become an entrepreneur herself from an early age. After beginning her career in finance in London, she returned home to Kenya and launched Lami in 2018. Lami, <a href="/tech-opens-the-door-for-low-income-africans-to-get-the-insurance-they-need" target="_blank" rel="noopener">an Accion Venture Lab portfolio company</a>, is an embedded fintech company that provides affordable, accessible insurance products to underserved people across Africa through partner platforms.</p>
<p>On founding <a href="https://www.lami.world/" target="_blank" rel="noopener">Lami</a>, she says, “My main motivation is the fact that a lot of people don&#8217;t have access to insurance products in Africa. A few years ago, I had a conversation with a waiter who told me he didn&#8217;t have medical insurance, and that got me thinking about the insurance space.” She started researching and realized there was a lack of technological infrastructure to distribute insurance products widely and affordably. “I think insurance is one part of financial inclusion that has really been ignored. It brings about a lot of security because here in most of Africa, people rely on single sources of income,” she says. <a href="https://www.accion.org/digital-insurance-offers-security-for-underserved-communities-in-africa" target="_blank" rel="noopener">Lami leverages technology to close those gaps</a> and give people access to the safety net that insurance can provide during illness, accidents, and other disruptions to their income.</p>
<p>Because many people distrust insurance, Jihan and her team stress the importance of building confidence and trust in their customer journey. They’ve found the best way to do that is to <a href="/improving-lives-with-digital-insurance-jihan-abass-lami" target="_blank" rel="noopener">embed their services into apps and interfaces</a> that people already use daily, so they can access Lami’s products through providers they already have a trusted relationship with, including banks, telcos, e-commerce platforms, and logistics companies.</p>
<p>“I think innovation is the backbone of what we&#8217;re doing here,” says Jihan. “We&#8217;re trying to transform how people get access to insurance products. We&#8217;ve digitized the entire value chain, something that hasn&#8217;t really been done in the past. We’re building the infrastructure and the rails for others to quickly launch products through their channels. To be able to overcome some of the hurdles in terms of how people view insurance, you need to have a product that is different, and that has a lot of impact and value.”</p>
<p>On her entrepreneurial journey, Jihan says, “I think being a female founder is unfortunately quite rare in most of Africa, and probably most of the world. It&#8217;s been an interesting experience being a female founder. In general, I would say that, despite the biases, a lot of people are really excited about seeing women leading companies, which has been very positive.” Lami’s team is 55, and Jihan is determined to attract and mentor young women and encourage them to grow within the company. “That&#8217;s a big indication of how we&#8217;re trying to support and cultivate young talent. Providing opportunities is one of the best ways that we can have a gender balance.”</p>
<p>“In the future, our goal is to be the leader in digital insurance. And not just in Africa but the rest of the developing world because we often face similar problems. We’re pushing the boundaries within the insurance space so we can have a transformative effect on the whole industry.”</p>


sandra

<p><img class="alignleft wp-image-27807" src="https://content.accion.org/wp-content/uploads/2023/03/sandra-calderon-accion.jpg" alt="Sandra Calderon, Accion" width="400" height="600" srcset="https://content.accion.org/wp-content/uploads/2023/03/sandra-calderon-accion.jpg 750w, https://content.accion.org/wp-content/uploads/2023/03/sandra-calderon-accion-200x300.jpg 200w, https://content.accion.org/wp-content/uploads/2023/03/sandra-calderon-accion-683x1024.jpg 683w" sizes="(max-width: 400px) 100vw, 400px" />Sandra Calderon is the Digital Strategy and Channels Director for Latin America, part of the <a href="/how-we-work/advise/accion-global-advisory-solutions" target="_blank" rel="noopener">Accion Global Advisory Solutions</a> team. She supports microfinance institutions and banks across Latin America to help them design, implement, and manage their digital financial service channels. She brings many years of experience in the commercial banking sector to <a href="/bio/sandra-calderon" target="_blank" rel="noopener">her role at Accion</a>. “When I was offered this opportunity to do something really tangible for low-income people, it was very exciting for me, and I immediately identified with it.”</p>
<p>Since then, she has managed a wide range of projects, like supporting institutions in adopting new channels such as ATMs, mini-branches, mobile banking, and agent networks – <a href="/the-digital-solution-for-small-business-owners-in-ecuador" target="_blank" rel="noopener">bringing life-changing financial tools to people across Latin America</a>, including Chile, Colombia, Dominican Republic, Ecuador, Nicaragua, Peru, and El Salvador. She’s passionate about building digital products and services that are easy to use, intuitive, and affordable so that all women can benefit from using them, no matter their level of experience using digital technologies.</p>
<p>Sandra emphasizes that innovation should always factor in an understanding of the realities that women face, and we must design tools from the perspective of women. “No one understands better the journey of a mother at home than another mother in charge of her home. Often, women must take care of their children while they are using digital products or services. For many, it’s also a great challenge to help their children with their homework using the internet or applications that schools use today. It’s necessary to provide learning spaces that make them feel proud of their achievements, build their confidence, empower them to become economically independent, and teach them to create new opportunities for themselves and their families.”</p>
<p>In many communities, women must divide their time between taking care of their family and earning a living, either because they are the heads of their household or because their economic dependence on their partner limits their autonomy. “The role of women in society is critical. We must facilitate their work by providing them with better tools to manage their households, start businesses, and earn a living for their families, including both financial and non-financial products and services,” says Sandra.</p>


Part of Accion’s annual series highlighting women working in financial inclusion

The United Nations theme for International Women’s Day this year is <a href="https://www.un.org/en/observances/womens-day" target="_blank" rel="noopener noreferrer">DigitALL: Innovation and technology for gender equality</a>, a celebration of women who are “championing the advancement of transformative technology and digital education.” With innovative digital tools, we can reach more women with the financial services they need to strengthen their livelihoods and build a better future. This year’s day of observance also recognizes the impact of the digital gender gaps and their potential to leave women further behind, both economically and socially.

In our <a href="/series/women-of-accion" target="_blank" rel="noopener noreferrer">annual blog series featuring women leaders of Accion and our partners</a>, we’re highlighting inspiring leaders who bring passion and creativity to their vision of building a better world for all people. Meet some of the women we’re proud to work with:
<h2>Erika Eurkus, Vice President, Resource Development at Accion</h2>
[caption id="attachment_27805" align="alignleft" width="400"]<img class="wp-image-27805" src="https://content.accion.org/wp-content/uploads/2023/03/erika-eurkus-abf-colleagues-south-africa.jpg" alt="Erika Eurkus and program partners" width="400" height="600" /> <em>Erika (left) with Accion program partners in South Africa</em>[/caption]

<span lang="EN-US" xml:lang="EN-US" data-contrast="auto">Erika Eurkus’ relationship with Accion goes back two decades, spanning both US and global work and several different programmatic efforts — from working with peer loan groups and developing individual loan products to raising loan funds and launching corporate partnerships. Now she works with Accion’s engaged and passionate donors who share our values and propel our mission forward.</span>

<span data-contrast="auto">Erika started her career in her hometown of Boston, Massachusetts. “In my heart, I always knew I would eventually have a career with a purpose, especially one focusing on social justice,” she says. “After graduating from college, I accepted a position as an AmeriCorps VISTA volunteer for a domestic microcredit organization. And my career working to create economic opportunity was launched far sooner than I had expected — and right in my own backyard.” Erika worked as a loan officer and program manager for small business lenders Working Capital and then Accion USA (now Ascendus). “Working directly with small business owners opened my eyes to the vast disparities that exist in access to capital, and I knew I could have a great impact in harnessing increased resources for our clients.”</span><span data-ccp-props="{}"> </span>

<span data-contrast="auto">In her current role as Vice President for Accion’s Resource Development team, </span><a href="https://www.accion.org/bio/erika-eurkus" target="_blank" rel="noopener noreferrer"><span data-contrast="none">Erika Eurkus</span></a><span data-contrast="auto"> oversees individual philanthropy, helping Accion further our work to bring opportunity to low-income people worldwide. “We must keep building public-private partnerships locally and globally to impact maternal health, early childhood education, and a financial system that works for everyone,” she says.  </span><span data-ccp-props="{}"> </span>

<span data-contrast="auto">While Erika is energized by the rapid pace of digitization in financial services, she recognizes the reality that profound inequalities in society have contributed to fewer opportunities for women and a resulting loss of economic productivity. “To reach equity, we must continuously generate bold ideas, creative thinking, and action. We can’t quiet any voice who has something to say. And, of course, partnerships – shared values and common goals – can achieve so much and are key to our work at Accion,” says Erika, reflecting on some of the partnerships she’s helped develop over the years. For example, the Brewing the American Dream partnership between Samuel Adams and Accion Opportunity Fund, a program designed to provide food and beverage entrepreneurs with the resources they need to succeed — including many businesses run by women and people of color who are often shut out of the formal financial system.</span><span data-ccp-props="{}"> </span>

<span data-contrast="auto">To others who are looking to make an impact, Erika says, “Opportunities to have an impact abound in today’s fast-moving economies. When I studied economics, the only mention of social impact was through optional reading, which happened to lead me to a short </span><i><span data-contrast="auto">Economist</span></i><span data-contrast="auto"> piece on microfinance. Today, myriad non-profits, companies of all sizes, and hybrid organizations are focused on some element of impact. The key is to find a connection to a cause that is meaningful to you and seek out an opportunity within that field that provides learning, growth, and the chance to effect change.” </span><span data-ccp-props="{}"> </span>

Women leaders innovate for a more equitable world, part one

Michael Schlein

<em>This blog is co-authored by <a href="https://www.mastercardcenter.org/our-team/shamina-singh" target="_blank" rel="noopener noreferrer">Shamina Singh</a>, Founder and President of Mastercard Center for Inclusive Growth.</em>

After many years of little progress, we’re finally narrowing the gender gap in financial account ownership. According to the most recent <a href="https://www.worldbank.org/en/publication/globalfindex/Report" target="_blank" rel="noopener noreferrer">Findex</a>, the gap narrowed from 9 percent to 6 percent across developing economies as more women gained access to financial tools.

But a large portion of that progress was due to one country: India. If you remove India’s progress, much of the developing world has a double-digit gender gap, and globally women are still more likely than men to be unbanked. About 740 million women—13 percent of all adults globally and 54 percent of the unbanked—don’t have a financial account. We need to do a better job.
<blockquote class="blockquote">Today, women continue to deal with discrimination and restrictive social norms, making it much harder to access capital, skills, and resources. Rising prices, disrupted supply chains, and increasing demand for digital services are adding new challenges.</blockquote>
These barriers help explain why women entrepreneurs faced the most <a href="https://www.centerforfinancialinclusion.org/preparing-msmes-for-future-crises-lessons-from-covid-19" target="_blank" rel="noopener noreferrer">severe effects</a> of the global pandemic, including higher rates of business closure and lower profit levels. Digital tools can make it easier to adapt and recover, but <a href="https://www.centerforfinancialinclusion.org/digital-adoption-of-msmes-during-covid-19" target="_blank" rel="noopener noreferrer">digital uptake</a> among women small business owners was alarmingly slow and sporadic, and even declined during the pandemic. The longer they remain in a cash world, the longer they remain invisible to the financial system.

Investing in the digitization of small businesses, especially those owned by women, will enable them to survive an economic downturn and continue providing jobs, goods, and services to billions of people globally. And connecting more women-led small businesses to digital financial tools can help them build resilience, boost their incomes, and better serve their communities.

Now, after an exciting global project focused on tackling this very challenge, <a href="https://www.accion.org/the-impact-of-digital-transformation-on-underserved-microbusinesses-findings-from-accions-partnership-with-mastercard" target="_blank" rel="noopener noreferrer">we have new evidence</a> that backs this up.

[embed]https://youtu.be/gqofKmcYF8w[/embed]
<h3>Opening doors to the digital economy—and financial health</h3>
For the past four years, Accion and Mastercard have worked with nine financial service providers and 50 fintech startups around the world to help more micro and small businesses go digital. By working with financial companies with deep ties to their communities, we developed digital products and capabilities that meet the needs of underserved entrepreneurs—and help them participate in the digital economy.

Together, we launched innovation hubs, rolled out savings tools and digital loans, reimagined microfinance lending using mobile apps and texting services, and more. To ensure products were used, not merely accessible, we placed clients’ needs at the heart of our work, applied human-centered design, incentivized usage, and focused on improving clients’ financial health.

Small businesses reported a range of benefits as they started using digital products. Perhaps most importantly, digital usage led to improved financial health, including the ability to repay loans on time, cover business expenses, and purchase sufficient inventory to meet demand. Across five countries, nearly 80% of digital product users said they could better manage these financial challenges.

Digital acceptance grew among women, who now account for more than 70% of these product’s active users. Women entrepreneurs reported significant improvements in their financial health, with more than 70% reporting that digital tools contributed to this improvement. Compared to other products, digital wallets were most popular among women small business owners, with more than 80% reporting their quality of life had improved because of the new services it gave them access to.

[caption id="attachment_27775" align="alignright" width="329"]<img class=" wp-image-27775" src="https://content.accion.org/wp-content/uploads/2023/03/Lourdes.jpg" alt="Lourdes, a BancoSol customer, shows the Accion and BancoSol team the applications she uses to design intricate patterns on fabric. " width="329" height="382" /> <em>Lourdes, a BancoSol customer, shows the Accion and BancoSol team the applications she uses to design intricate patterns on fabric.</em>[/caption]

What explains these results? The answer could be quite simple: digital tools save time. More than 75% of our digital wallet users said that saving time was the most important benefit they received from the products. For small business owners who juggle the needs of their customers while managing their households and providing for their families, time is scarce. Any time savings can be reinvested into their business to drive growth. In fact, digital product users reported improved growth activities, including increased sales revenues, hiring more employees, and starting new businesses.

In one example, we worked with BancoSol, Bolivia’s largest microfinance provider serving 1.5 million clients, to develop a gamified savings tool that rewards users for making deposits and maintaining a minimum balance. Regularly using digital products is key to building financial health and literacy, and nearly 90% of small business clients attributed their usage of this product to their ability to resolve financial health challenges.

This innovative product made a difference for BancoSol’s women <a href="https://www.accion.org/gamification-motivates-microentrepreneurs-to-save-in-bolivia">clients</a> like Lourdes, who owns a costume and garment shop in La Paz. She said, “It’s hard to part with your hard-earned money and watch it sit idly in an account collecting dust. I want my money to work hard the way I do.” Now, her savings are working alongside her to build a brighter future.
<h3>Catalyzing investments for a strong, resilient economy</h3>
Looking ahead, we are optimistic about how this work can open pathways to further build the financial health and resilience of women entrepreneurs. We’ve seen that, in addition to supporting established providers, nurturing early-stage fintech companies can radically increase the accessibility and usefulness of financial solutions for underserved small businesses. Fintechs can create game-changing products, embed financial tools in existing platforms to reach millions of people, and find new ways to shift behaviors and build skills among underserved entrepreneurs through innovations like gamification.

We are also eager to catalyze investments that address gender inequalities by developing products with robust business cases and scalability. At the same time, we must ensure that fintechs consider women’s unique needs and digital identities. For example, women’s irregular cell phone top-ups can make them appear like credit risks in the eyes of an algorithm, even though their husbands are often responsible for topping up the phones.

[caption id="attachment_27107" align="aligncenter" width="750"]<img class=" wp-image-27107" src="https://content.accion.org/wp-content/uploads/2022/11/Deasy_Haryuni_Aug2022_Indonesia1-e1667927054385-1024x766.jpg" alt="Desi, laundry business owner, Bina Artha Ventura client" width="750" height="561" /> <em>Desi, a laundry business owner in Indonesia, credits Bina Artha Ventura’s mobile app for helping her stay on top of her bills. “If I want to pay my bills, I can confirm this with the app without needing to go out. I can do this while washing or ironing the clothes. That really helps me,” she said.</em>[/caption]

Our work together reached more than 12.8 million people, with more than 5.6 million micro and small businesses using digital tools on a regular basis. Most encouragingly, 30-day usage rates have increased fourfold over the past year, which shows people are applying these tools to their day-to-day lives.

We encourage other stakeholders to help us build on this progress by leveraging the power of the digital economy to help small businesses build better livelihoods for themselves and their communities. As global challenges continue to spread disruption and uncertainty, collective action offers a means of building a more resilient future for us all, especially women.

With new digital tools, millions of women entrepreneurs are building resilience

Sarah Sassoon

Why we invested in Trukkr, the digital logistics platform shaking up Pakistan’s disjointed trucking sector

<img class="wp-image-27796 alignright" src="https://content.accion.org/wp-content/uploads/2023/03/3-Truck-1024x1024.jpeg" alt="A truck in Pakistan" width="415" height="415" />

Across Pakistan, hundreds of thousands of truck drivers are hired by corporate clients to transport goods throughout the country. The vast majority of the country’s trucking companies are family-owned small businesses that own just a few trucks and often lack the resources and financial support needed to strengthen their businesses. Now, technology is opening pathways to growth within the traditional logistics industry in Pakistan.

<a href="https://trukkr.pk/" target="_blank" rel="noopener noreferrer">Trukkr</a> is a Pakistan-based startup focused on solving the problems faced by micro, small, and medium sized (MSME) trucking companies and their corporate clients. Trukkr is our second investment in Pakistan and our first in the shipping and logistics industry worldwide. The company’s digital solutions are ready to revolutionize Pakistan’s trucking sector and open opportunities for drivers and businesses in the industry.
<h3>Speed bumps for MSME truckers and their clients</h3>
Pakistan’s trucking sector is stuck in the past. Most trucking businesses in the country are small operations that work with just two or three of their own trucks. They often have to cover operational expenses from their own pockets, as they can wait up to 90 days for clients to pay them for deliveries. This working capital crunch means that small-scale truckers cannot afford to take on new jobs, preventing them from growing their businesses in a scalable way.

Large corporations are also facing many obstacles. They cannot access technologically enabled tools that can map their end-to-end logistics processes. Trukkr found that the most significant challenges corporations face include a lack of data on the movement of goods, high incidences of pilferage, and difficulty finding trucks for spot consignments, among others.

Pakistan ranked 122 out of 160 in the <a href="https://lpi.worldbank.org/international/global" target="_blank" rel="noopener noreferrer">World Bank’s 2018 logistics performance index</a>, falling below other countries in the region, including India and Bangladesh, and achieved low scores in tracking, tracing, and timeliness. Trukkr is working hard to provide solutions to these key areas. By improving the sector across Pakistan, they’re also opening a wealth of opportunity for the company’s future and growth.
<h3>Delivering solutions for truckers in Pakistan</h3>
To solve these pain points, Trukkr has created an app that Pakistan’s trucking businesses can use to track trip-related expenses and invoices. Trukkr then uses the in-platform trucker data to underwrite financial services, beginning with working capital loans, for these MSMEs who otherwise lack access to financing. In the future, Trukkr aims to leverage platform data to design a full suite of digital financial services and products for its customers, including more sophisticated loan products, insurance products, and more.

On the other end, corporations use Trukkr’s Transport Management System (TMS) to track their shipments, post open jobs, and improve efficiency in moving their products. Both sets of stakeholders – truckers and shippers – meet in the middle on Trukkr’s platform, providing seamless and digitized communication between all parties involved.
<h3>In the driver’s seat</h3>
Accion Venture Lab first found out about Trukkr from <a href="https://www.linkedin.com/in/mishal-adamjee-77025b27/?originalSubdomain=pk" target="_blank" rel="noopener noreferrer">Mishal Adamjee</a>, one of its five co-founders. The company’s co-founder and CEO, Sheryar Bawany, has more than ten years of experience in Pakistan’s supply chain and logistics industry. His deep operational background working on the ground in the sector has allowed him to scale up the company’s customer acquisition strategy quickly.

Ali Reza Haji, co-founder and CFO, has worked across both finance and shipping and logistics globally. He previously worked at Nomura in London before returning home to Pakistan.

<a href="https://www.linkedin.com/in/kasra-zunnaiyyer-81698a112/" target="_blank" rel="noopener noreferrer">Kasra Zunnaiyyer</a>, Trukkr’s chief technology officer and another of the company’s co-founders, graduated in computer science at Karachi University, in Pakistan, before studying leadership and innovation at the Massachusetts Institute of Technology.

Trukkr’s CBO, co-founder <a href="https://www.linkedin.com/in/waqas-khatri-8aa878191/" target="_blank" rel="noopener noreferrer">Waqas Khatri</a>, has a background in engineering and biotechnology and excelled as the director of strategy and new initiatives at chemical company Ittehad Chemicals Limited before joining Trukkr.

The founders’ deep experience across their specific focus areas, which include supply chain and logistics, finance, and corporate strategy, is impressive. We appreciate their thoughtful approach, ease of communication, and honesty when admitting to challenges, and we are excited to partner with them.

Hear more about Trukkr from co-founder Mishal Adamjee:

[embed]https://youtu.be/sQ_4qp0PdZk[/embed]
<h3>Roadmap to success</h3>
With Pakistan’s trucking industry still largely analog, Trukkr sees a huge opportunity to digitize the industry and impact its stakeholders. Furthermore, as recent flooding devastated the country and displaced millions of people, efforts to rebuild will require streamlined logistics management, and Trukkr has only seen demand for its products increase in the months since the flooding began in August. With its new funding, the company plans to expand its business throughout Pakistan and grow its base of MSME truckers, and their corporate clients, in the process.

The coronavirus pandemic showed how much the world relies on global supply chains. At Accion Venture Lab, we want to bet on a company striving to tackle inefficiencies in a market filled with opportunities.

Trukkr is driving towards a bright future as the one-stop shop for Pakistan’s trucking industry, and we could not be more excited to join them on this journey.

<hr />

<em>Read more about Trukkr, the newest Accion Venture Lab portfolio company, in <a href="https://www.reuters.com/markets/asia/pakistani-fintech-startup-trukkr-raises-64-mln-gets-lending-licence-2023-03-07/" target="_blank" rel="noopener noreferrer">Reuters</a>.</em>

Digital solutions for Pakistan’s small trucking businesses

Open letter in support of Ajay Banga

Sebastian Molina Gasman

Thoughtfully designed digital platforms connect women in Brazil to the financial resources needed to start and grow businesses

Luciana’s restaurant in São Paulo, called Barraca da Lu Lu, is inspired by her childhood in a small town in Piauí in northeast Brazil. “Every detail refers to my origins,” she says. “The logo has a cashew, which reminds me a lot of my childhood. I was raised eating a lot of cashews.” Cashew trees surrounded her grandmother’s home in the countryside of Piauí. “I would wake up and see the ground covered in cashews and birds all around,” Luciana recalls.

Before she opened her restaurant, Luciana started by running a stand at a bus stop where she sold egg custard pastries called <em>pastéis</em>, and tapioca crepes that her father taught her how to make growing up. She quickly found success selling her snacks to workers from neighboring businesses and clients at a nearby gym.

“I started in a very small space. I didn't know it was going to get to the size it is today,” she recalls, but time and again, customers showed that they wanted to keep dining at Barraca da Lu Lu. Her secret? “When it comes to the food, we prepare it with love. [Our ingredients] may be the same brand that the neighbor uses. The respect we have for the food differentiates the flavor.” Among her loyal customers, she’s known for her <em>bife a cavalo</em>, a traditional Brazilian dish with steak and eggs, as well as her rice, beans, and vegetable dishes.

When the COVID-19 pandemic reached São Paulo, “Everything closed. Nobody released credit to anyone,” said Luciana. With bills coming due and lockdown measures in place, Luciana began to despair.

After searching online, she was able to find relief through Dinie. <a href="https://www.dinie.com/" target="_blank" rel="noopener noreferrer">Dinie</a> is an embedded lender serving micro, small, and medium-sized enterprises (MSMEs) in Brazil. Suzy Ferreira, Andrea Burattini, and Vinícius Cibim co-founded the company to seamlessly provide digital lending products in the same platforms that entrepreneurs already use to run their businesses. Luciana first started delivering her food through iFood's platform, Dinie's partner that offers food delivery services in Brazil. Through the partnership, MSMEs, such as Barraca da Lu Lu, can access credit offers that fit their financial situation.

For Dinie’s founders, <a href="https://www.accion.org/women-leaders-rebuild-a-more-equitable-world-part-one#suzy" target="_blank" rel="noopener noreferrer">the company’s mission is personal</a>. “When I was very little, I watched my father as a small business entrepreneur really struggle building his business,” recalls Suzy. “These small businesses don't have working capital. They don't have excess liquidity to be able to cover the cash flow needs of the business.”

These platforms have access to data on clients’ cash flows and other payment behavior, which gives Dinie a basis for providing credit. Dinie’s customers can access flexible credit when they need it and receive the loan instantly. Entrepreneurs like Luciana can use the extra <a href="https://www.accion.org/embedded-finance-for-small-businesses-suzy-ferriera-dinie" target="_blank" rel="noopener noreferrer">working capital from Dinie</a> for marketing, payments, inventory, and other expenses that help them better serve their customers. <a href="https://www.accion.org/embedded-finance-meets-small-business-lending-in-latin-america" target="_blank" rel="noopener noreferrer">Accion Venture Lab is proud to have invested in Dinie</a> to expand these financial services to more of Brazil’s underserved MSMEs.

<img class=" wp-image-27838 aligncenter" src="https://content.accion.org/wp-content/uploads/2023/03/Luciana_de_Almeida_Silva_Oct2022_Brazil3-1024x683.jpg" alt="Luciana in her restaurant" width="563" height="376" />

“It was very easy [to get credit from Dinie],” Luciana recalls. “My contact explained everything clearly to me. In two to three days, the loan was approved and [in my account] to do what I needed, which was to pay my bills.”

Dinie co-founders Suzy Ferreira and Andrea Burattini are acutely aware of the ways women are excluded from the financial system. While their target clients are small business owners who don’t have access to credit, women-led startups like theirs receive only a tiny percentage of investments from venture capital firms around the world.

“Being founded by two women, we appreciate a lot, and we want to see the impact of our actions here at Dinie [result] in more female entrepreneurs,” says Andrea. “Historically, women entrepreneurs have had more difficulty accessing credit than men entrepreneurs. And today, our customer base of female entrepreneurs is 45 percent of our customer base.”
<blockquote class="pullquote--right">“I find it very powerful how financial services are interconnected to everything we do. It enables us to fulfill our dreams.</blockquote>
“I find it very powerful how financial services are interconnected to everything we do. It enables us to fulfill our dreams. It enables us to create businesses, create ideas, and basically create wealth through the world,” says Andrea.

An accessible, affordable loan from Dinie helped keep Barraca da Lu Lu afloat through the pandemic. The restaurant remains open, and customers are already asking when Luciana plans to expand again. “This loan has made a huge difference in my life because I was able to continue my dream,” she says. “It means a lot to my family because it’s not just my dream, but also my husband’s and my son’s, too.”

Watch how women entrepreneurs like Luciana have grown their businesses using digital financial tools:

[embed]https://youtu.be/KXCbiDeC6x4[/embed]

Embedded finance enables Luciana to expand her thriving restaurant

Paolo Limcaoco

Why we invested in Semaai, a company building full-stack, agritech solutions to improve livelihoods

This week, we <a href="https://www.accion.org/indonesian-agtech-startup-semaai-closes-a-bridge-funding-round-bringing-total-raised-to-us2-9-million" target="_blank" rel="noopener noreferrer">announced our investment in </a><a href="https://www.accion.org/indonesian-agtech-startup-semaai-closes-a-bridge-funding-round-bringing-total-raised-to-us2-9-million">Semaai</a>, a company with big plans to digitize Indonesia’s $100 billion agriculture industry. We are excited to work with the talented founding group of Abhishek Gupta, Yoga Anindito, and Gaurav Batra — and the rest of the Semaai team — to support the stakeholders in this vital sector. Semaai is Accion Venture Lab’s fourth investment in Indonesia and our sixth in Southeast Asia. Our first agritech investment in the region, the company offers a full suite of solutions to support the agriculture ecosystem.
<h3>Addressing pain points of small-scale agricultural retailers</h3>
Semaai works with small mom and pop shops that sell agricultural inputs such as fertilizers, seeds, pesticides, and other products to farmers. These retailers, locally known as<em> toko tanis</em>, traditionally build their inventory by bartering with numerous distributors over WhatsApp or SMS. Because of this analog and traditional sourcing process, small-scale toko tanis struggle to access fairly priced stock, direct deliveries, and product information.

That’s where Semaai comes in. The company provides toko tanis with a digital marketplace, allowing them to buy inventory from their phones without leaving their store, saving them costly downtime. These small retailers can source the products they need through an easy-to-use application with direct delivery. Semaai not only makes purchasing and receiving products simpler but also provides key data points on each product it carries, giving the toko tanis better visibility on what they purchased.

And the procurement platform is just the beginning. The company aims to solve another challenge for these small retailers — the lack of access to financing. As toko tanis build their transaction history, they will soon be able to purchase inventory on credit, freeing them from cash constraints and giving them the opportunity to grow their business.
<h3>Aiming to reach another key stakeholder — the farmer</h3>
These small retailers are just the initial customer for Semaai. As a next step, the company wants to support smallholder farmers. For this, the toko tanis move from being a customer to becoming a critical partner for Semaai. The retailers, who have deep relationships and are trusted by the farmers, will be Semaai’s ambassadors on the field. Through these retailers, Semaai will help farmers sell their produce directly to buyers. With the toko tanis serving as an extension of the company, Semaai will efficiently provide offtaking services to the farmers, giving them clear and reliable access to market at fair prices.
<h3>Closing gaps and finding opportunities in a fertile and vital industry</h3>
[caption id="attachment_27769" align="alignright" width="237"]<img class=" wp-image-27769" src="https://content.accion.org/wp-content/uploads/2023/03/Screen-Shot-2023-03-02-at-20.31.07-e1677809329181.png" alt="Semaai app screenshot" width="237" height="303" /> <em>Semaai app screenshot</em>[/caption]

Indonesia’s agriculture industry is massive and vital to the country’s economy and food supply. The sector includes almost <a href="https://www.bloomberg.com/news/articles/2021-11-26/millennial-jobs-indonesia-s-plan-to-create-new-farmers-shows-promising-numbers" target="_blank" rel="noopener noreferrer">40 million farmers</a> and many small businesses, accounting for about 30 percent of employment. It also significantly contributes to the country’s GDP (<a href="https://www.ifad.org/documents/38714170/39972509/Investing+in+rural+people+in+Indonesia.pdf/70e8e737-5a47-4826-89db-de5c60da6c02" target="_blank" rel="noopener noreferrer">13.5 percent</a><a href="https://www.ifad.org/documents/38714170/39972509/Investing+in+rural+people+in+Indonesia.pdf/70e8e737-5a47-4826-89db-de5c60da6c02">)</a>. However, the agriculture industry and its stakeholders remain highly marginalized and underinvested. The farmers and all the small businesses that work with them are crucial for all of us to continue living our lives, yet we have not supported them enough. Given this, there is a need (and significant opportunity) in this industry, and Semaai wants to play a crucial role in empowering the farmers and retailers and improving their livelihoods.
<h3><span lang="EN">Having a solid founding team with great complementary skills</span></h3>
[caption id="attachment_27762" align="aligncenter" width="1024"]<img class="size-large wp-image-27762" src="https://content.accion.org/wp-content/uploads/2023/03/Screen-Shot-2023-03-02-at-20.29.22-1024x680.png" alt="Semaai co-founders: Yoga Anandito, Gaurav Batra, Abhishek Gupta" width="1024" height="680" /> <em>Semaai co-founders: Yoga Anandito, Gaurav Batra, Abhishek Gupta</em>[/caption]

Each member of Semaai’s founding team brings a different but complementary set of experience and knowledge. <a href="https://www.linkedin.com/in/abhishekg-a/" target="_blank" rel="noopener noreferrer">Abhishek</a> sees things from 10,000 feet, with an eye on the numbers and KPIs. He understands what has worked (or not worked) in various national and local programs focused on rural area development. He has a development finance background after a career with the World Bank in the US, Indonesia, and India. <a href="https://www.linkedin.com/in/yoga-anindito-4bba7161/" target="_blank" rel="noopener noreferrer">Yoga</a> is the operator and key person on the ground, with extensive experience working on the ground and seeing firsthand the pain points people face in the space. He previously ran a fertilizer distribution startup making him perfectly placed to figure out what solutions are essential and needed. Lastly, <a href="https://www.linkedin.com/in/gaurav-batra-b4665240/" target="_blank" rel="noopener noreferrer">Gaurav</a> is the tech and product head who previously led multiple tech teams for local and global startups in India and Indonesia. Gaurav has long been looking to build something of his own that is meaningful and now leads tech at Semaai.
<h3>Seizing the right moment to support the agriculture ecosystem</h3>
[caption id="attachment_27763" align="aligncenter" width="1024"]<img class="wp-image-27763 size-large" src="https://content.accion.org/wp-content/uploads/2023/03/Screen-Shot-2023-03-02-at-20.29.42-1024x575.png" alt="Semaai team at a drone demo" width="1024" height="575" /> <em>Semaai team at a drone demo</em>[/caption]

<a href="https://www.accion.org/how-we-work/invest/accion-venture-lab" target="_blank" rel="noopener noreferrer">At Accion Venture Lab</a>, we invest and support startups providing digital solutions and financial services to underserved people and communities. Agriculture is a key focus theme given how the sector remains underinvested and the key players highly marginalized.

While Semaai is our first foray into backing an agritech startups in Southeast Asia, it joins many other fast-growing agritech companies in our portfolio, including <a href="https://www.pula-advisors.com/" target="_blank" rel="noopener noreferrer">Pula</a> and <a href="https://www.accion.org/learning-new-skills-helped-this-longtime-farmer-thrive" target="_blank" rel="noopener noreferrer">Apollo</a> in Africa, <a href="https://www.accion.org/agri-inputs-b2b-marketplace-agrim-emerges-from-stealth-mode-with-2m-in-seed-funding-from-omnivore-india-quotient-and-accion-venture-lab" target="_blank" rel="noopener noreferrer">AgriM</a> and <a href="https://www.accion.org/farm-automation-tech-opens-financial-access-for-aquaculture-farmers-in-india" target="_blank" rel="noopener noreferrer">AquaExchange</a> in South Asia, and <a href="https://www.accion.org/how-one-company-uses-tech-to-support-brazilian-farmers" target="_blank" rel="noopener noreferrer">Terra</a><a href="https://www.accion.org/how-one-company-uses-tech-to-support-brazilian-farmers">Magna</a> in Latin America.

We have seen how Indonesia’s agriculture industry has recently started becoming more tech-enabled, with a wave of agritech startups emerging. In addition, we can see that stakeholders are increasingly going digital and younger generations are beginning to join the family business. Combining these factors with the massive market that the sector represents, we can see significant opportunities for companies like Semaai to create sustainable impact and return.

With this latest round of funding, Semaai will continue to work with toko tanis and deepen their relationship further by addressing other pain points in addition to sourcing inputs. Semaai is in the early stages of piloting a financial product for their key customers, allowing them to buy inventory on credit. The company will continue innovating and partnering with toko tanis to serve smallholder farmers.

We believe Semaai is tackling massive problems in the agriculture industry, and doing so in a carefully phased, innovative, and sustainable way. We are excited to be with the company in this early stage and see the impact they can bring to industry stakeholders, especially the toko tanis and smallholder farmers. We are proud to support their journey.

Empowering Indonesian agribusinesses through digitization

Ishan Mishra

Why we invested in Magma, the B2B platform helping small construction material manufacturers in India and beyond boost output, sales, and access vital finance.

[caption id="attachment_27705" align="alignright" width="302"]<img class="wp-image-27705" src="https://content.accion.org/wp-content/uploads/2023/02/PHOTO-2022-11-24-15-33-12-768x1024.jpg" alt="A Magma client factory in India" width="302" height="403" /> <em>A Magma client factory in India</em>[/caption]

India has become an emerging global manufacturing hub. Driven by favorable policy measures, the availability of talent, low-cost manufacturing capabilities, and global buyers de-risking their supply chains, India is now a key player in the building materials export segment and a leader in several subcategories. For example, India’s exports of ceramics and glassware hit a record of $3.2B last year and grew by 16 percent over the last five years. This growth has opened new opportunities for India’s many small manufacturing and construction businesses.

However, India’s micro, small, and medium-sized (MSME) building material manufacturers remain largely analog. They rely on a complicated and inefficient supply chain to procure raw materials. MSME manufacturers struggle to attract top-notch sales talent, limiting their access to global buyers. They also face difficulties in securing working capital, which limits their ability to efficiently plan their production, resulting in poor capital efficiency and sub-optimal production levels.

For India to realize its potential as a global manufacturing hub, MSME manufacturers must be equipped and empowered to make export-ready products. At Accion Venture Lab, we are excited to partner with <a href="https://magmafactory.com/" target="_blank" rel="noopener noreferrer">Magma</a>, a business-to-business (B2B) platform that enables small and medium-sized manufacturers in the construction material sector to procure raw materials and access demand from global buyers. Through the company’s flagship products, Factory App and Supplier App, small manufacturers can:
<ol>
 	<li>Purchase raw materials at highly competitive prices;</li>
 	<li>Discover from global buyers through AI-based lead generation tool;</li>
 	<li>Access credit products for inventory and trade finance; and</li>
 	<li>Digitize and optimize day-to-day factory operations.</li>
</ol>
We’re excited to support Magma as they:
<h3>Tackle the obstacles facing MSME construction manufacturers</h3>
Small-scale manufacturers need to keep their production costs low and prices competitive in order to compete for buyers in the global market. In addition, they need sales and marketing capabilities to reach these global buyers. Magma’s platform helps MSME manufacturers to procure low-cost raw materials and digitize their daily factory tasks which helps reduce their production costs. The platform also provides these manufacturers with buyer leads and access to new potential customers, helping them to grow their business and optimize their production.
<h3>Connect small manufacturing businesses to credit through a B2B platform</h3>
Access to working capital for raw material procurement remains a challenge for MSME manufacturers as most financial institutions won’t lend to small manufacturing companies. In addition, without access to formal post-shipment financing, they have to wait 45-60 days to receive payment from their customers. These reasons cause poor capital efficiency and sub-optimal capacity utilization, often resulting in the manufacturers failing to meet their buyer’s lead-time requirements.

Through Magma’s closed-loop ecosystem, the company offers credit products in a contextual and timely manner. Trade finance continues to be underpenetrated due to the challenges and risks associated with underwriting. By leveraging its relationship and understanding of the MSME manufacturers and their global buyers, Magma’s platform offers a unique solution to solve these challenges and makes credit accessible to MSME manufacturers.
<h3>Enable small manufacturers to compete globally</h3>
Magma’s platform helps MSME manufacturers digitize their factories, reduce their procurement costs, improve their revenue-earning potential, and access the finance needed to catalyze their business growth. Magma also aims to assist MSMEs on their platform in standardizing their systems and processes and delivering consistent quality products within agreed-upon timelines, enabling them to compete with large corporations in the global trade market.
<h3>Construct a better future for small businesses</h3>
Global supply chains are undergoing tremendous change, but with the right set of digital tools, networks of global buyers, and access to financing, small construction businesses will be well-poised to succeed in this new reality. We're excited to welcome <a href="https://www.linkedin.com/in/ACoAACjoa5oBM4jKCVJ9DCTNaqQ1bi0_9Xv-JQE" target="_blank" rel="noopener noreferrer">Neal Thakker</a> and the team at <a href="https://www.linkedin.com/company/magma-wholesale/" target="_blank" rel="noopener noreferrer">Magma</a> to the Accion Venture Lab portfolio. We can’t wait to see where they will go from here.

Small manufacturers in India go global with Magma

Tanwi Kumari

Arnelit Philip Mani

Vishal  Ajmera

<h3>Environmental benefits for rural communities<a name="_Toc112952430"></a></h3>
<div id="attachment_27692" style="width: 332px" class="wp-caption alignright"><img aria-describedby="caption-attachment-27692" class=" wp-image-27692" src="https://content.accion.org/wp-content/uploads/2023/02/IMG20220714133915-768x1024.jpg" alt="Rajashree Thorat from Sonawadi village in Baramati district of Maharashtra" width="322" height="430" /><p id="caption-attachment-27692" class="wp-caption-text"><em>Rajashree Thorat from Sonawadi village in Baramati district of Maharashtra</em></p></div>
<p><a name="_Toc112952430"></a><strong>Biodigesters have low emissions, create less pollution, promote afforestation, and follow the waste management recycling principles: </strong><a href="https://www.accion.org/farmers-turn-livestock-waste-into-renewable-energy-and-cost-savings" target="_blank" rel="noopener">Using livestock waste as renewable energy</a>, women dairy farmers use biodigesters act as a catalyst to build a cleaner and greener environment. More than half of the respondents know about renewable sources of energy like solar panels that help in converting solar (heat) energy into electricity, and that biogas falls in the same category of renewable energy sources.</p>
<p><strong>Using bio-slurry helps women dairy farmers transition to organic agriculture</strong>: Bio-slurry is considered a nutrient-rich fertilizer for crops that improves soil fertility, soil structure, and crop yields. Among the small and large unit dairy farmers, it is considered to be even better than regular farmyard manure. In fact, large-scale commercial dairy farm owners have invested in large units of Sistema.bio biodigesters, just to produce bio-slurry as it significantly improves the yield and quality of their crops.</p>
<p>With access to and by consuming superior quality organic food, women dairy farmers and their families have seen their health improve, and no longer suffer from burning eyes, coughing, and other concerns resulting from wood-burning stoves.</p>
<h3>Social benefits for women farmers</h3>
<p><a name="_Toc112952424"></a><strong>Women are empowered by owning assets and having the agency to make financial decisions:</strong> Traditionally, men have owned and controlled most of the fixed assets like land, cattle, and houses. Our study highlighted that though all respondents had land holdings, only 25 percent of the families had land under the woman’s name and 71 percent of the biodigesters were owned by the men in the family. Although the woman dairy farmer does all the hard work in the dairy value chain, she is deprived of income and profit sharing due to her lack of financial education, empowerment, and confidence to access financial markets independently. <strong>We found</strong> <strong>that despite 90 percent of the respondents having bank accounts, only 23 percent of the women dairy farmers had income from the milk they produce coming directly into their bank account.</strong></p>
<p><img class=" wp-image-27695 aligncenter" src="https://content.accion.org/wp-content/uploads/2023/02/Picture4.png" alt="Women are empowered by owning assets and having the agency to make financial decisions" width="582" height="282" srcset="https://content.accion.org/wp-content/uploads/2023/02/Picture4.png 708w, https://content.accion.org/wp-content/uploads/2023/02/Picture4-300x145.png 300w" sizes="(max-width: 582px) 100vw, 582px" /></p>
<blockquote class="blockquote"><p>During the focus group discussions, we observed that the societal norms do not grant permission for women to travel outside the village alone. The perception around women lacking knowledge and confidence to operate banking facilities on their own persists. Just opening a bank account does not guarantee a woman’s inclusion into the financial markets.</p></blockquote>
<p>The biggest obstacle to adopting biodigesters is the upfront cost of investment. For a smallholder woman dairy farmer, the cash outlay presents a trade-off between short-term needs, such as household and production requirements, versus long-term cost savings. Overall, the average return on investment for farmers purchasing biodigesters can reach as high as 270 to 300 percent over five years. So, there is a need to create awareness about the farmers&#8217; long-term benefits and cost savings, potentially through gamified sessions, simulations, and campaigns. Currently, Sistema.bio is providing asset financing to their customers, which is not sustainable. Financial service providers (FSPs) need to be encouraged to provide credit to women dairy farmers for buying green assets like biodigesters. This can be achieved by developing use cases with cost-benefit analysis, or incentivizing FSPs to build green asset financing portfolios.</p>
<p>Based on the insights from this study and <a href="https://www.accion.org/transforming-waste-into-sustainable-energy-and-cost-savings-for-farmers" target="_blank" rel="noopener">building on our work in Kenya</a>, we are initiating dialogues with different stakeholders in India to improve access to finance and facilitate building an effective dairy value chain, and to scale and accept green assets like biodigesters among women dairy farmers and other low-income farmers. This intervention can help accelerate the transition to a low-carbon economy by promoting clean energy and more efficient energy use, as well as help tackle energy poverty.</p>
<p>We will continue to build from our experiences in India and Kenya to explore ways to strengthen the dairy ecosystem and are keen to work more in the area of green asset financing to help small-scale farmers reap the benefits of renewable energy. <a href="https://www.accion.org/advisory-contact" target="_blank" rel="noopener">Reach out</a> if you would like to learn more.</p>
<hr />
<p>[1] The smallest unit of biodigester from Sistema.bio costs between ₹30,000 &#8211; ₹50,000 ($370- $630) in India. The Sistema 6<sup>2 </sup>(provides 3 hours/day of biogas which is equivalent to 1.5LPG cylinder/month and Sistema 8<sup>2</sup> (provides 4.5 hours/day of biogas which is equivalent to 2.2LPG cylinder/month)</p>


Brief

For women dairy farmers across rural India, mornings can be a very stressful time. On top of completing household chores and getting their children ready for school, many women must handle the time-consuming task of collecting firewood which they need to for cooking fuel, before they begin tending to their farms. Energy poverty is a challenge for people all over the globe, especially women, who are the primary users and producers of household energy. When energy is scarce, the burden of tedious tasks like collecting firewood, leaves, twigs, and dung for cooking fuel often falls on the women of the household.

[caption id="attachment_27679" align="alignright" width="309"]<img class="wp-image-27679" src="https://content.accion.org/wp-content/uploads/2023/02/IMG20220714122252-768x1024.jpg" alt="Swati Jagtap from Malegaon village in Satara district of Maharashtra" width="309" height="412" /> <em>Swati Jagtap from Malegaon village in Satara district of Maharashtra</em>[/caption]

Around <strong>2.4 billion people</strong> worldwide — about one-third of the global population — lack access to clean cooking solutions and use open fires or inefficient stoves fueled by kerosene, biomass (wood, animal dung, and crop waste), or coal, which generates harmful household air pollution<strong>.</strong> As climate change presents mounting challenges<strong>, </strong><a href="https://www.accion.org/farmers-turn-livestock-waste-into-renewable-energy-and-cost-savings" target="_blank" rel="noopener noreferrer"><strong>the need for climate-smart technology and renewable energy sources is becoming increasingly urgent</strong></a><strong>.</strong> In June 2022<strong>, </strong><a href="https://www.accion.org/how-we-work/advise/accion-global-advisory-solutions" target="_blank" rel="noopener noreferrer"><strong>Accion’s Global Advisory Solutions</strong></a> team partnered with <a href="https://sistema.bio/" target="_blank" rel="noopener noreferrer"><strong>Sistema.bio</strong></a> to conduct a study to understand the benefits, financing, and barriers to adopting green energy assets by women dairy farmers using biodigesters in India. <a href="https://www.cgap.org/" target="_blank" rel="noopener noreferrer"><strong>Consultative Group to Assist the Poor (CGAP)</strong></a> funded this initiative.

Biodigesters are systems that break down organic farm animal waste and convert it into biogas and other by-products which can be used as substitutes for fertilizers. Each biodigester installation helps us get one step closer to achieving <a href="https://www.un.org/sustainabledevelopment/energy/" target="_blank" rel="noopener noreferrer"><strong>Sustainable Development Goal 7</strong></a>, Affordable and Clean Energy, with a goal to provide biogas to all small dairy farmers. In remote areas, LPG (liquefied petroleum gas) is not readily available, and electricity in villages is unreliable. After Sistema.bio introduced a technology with a prefabricated modular biodigester (including a full suite of biogas connections and a hybrid reactor designed to treat the daily waste of animal farms), the daily lives of the women dairy farmers we spoke to improved in quality. It became easier for them to manage the household and other chores. Biogas energy is not only used for cooking but also for chaffing the fodder for cattle. A biogas by-product, called bio-slurry, is produced by anaerobic fermentation of biomaterials (waste like cow dung, etc.) which has been widely used as a natural fertilizer in agricultural production, which has many nutrients and is also used like natural fertilizer in kitchen garden or farmlands to grow better quality, organic food produce. Among the dairy farmers we surveyed, biodigesters are acclaimed as a promising product made even more attractive by prompt and proactive service from Sistema.bio staff, for both installations as well as servicing.

Our insights from this study show that green energy assets like biodigesters provide a triple win for the woman dairy farmer, benefitting them economically, environmentally, and socially. Here’s what we learned:

[caption id="attachment_27691" align="aligncenter" width="558"]<img class=" wp-image-27691" src="https://content.accion.org/wp-content/uploads/2023/02/CGAP-biodigester-blog_benefits-framework_2.png" alt="Benefits of green energy for women farmer" width="558" height="558" /> <em>Benefits of green energy for women farmer</em>[/caption]
<h3><strong>Economic benefits of green energy</strong></h3>
[caption id="attachment_27676" align="alignright" width="460"]<img class=" wp-image-27676" src="https://content.accion.org/wp-content/uploads/2023/02/Screen-Shot-2023-02-14-at-15.27.58-1024x258.png" alt="Daily Cost of LPG vs. Biogas over 10 years" width="460" height="116" /> <em>Table 1: Daily Cost of LPG vs. Biogas over 10 years</em>[/caption]

<strong>Biodigesters[1] are green assets with optimum return on investment, leading to more household savings: </strong>For smallholder dairy farmers, the study confirmed that, assuming that liquified petroleum gas (LPG) cost increases by ₹100 ($1) annually over a 10-year period, and comparing the cost of LPG and biogas used for biodigesters,<strong> <span style="color: #000000;">the daily cost for LPG is ₹48 ($0.60), which is almost four times the daily cost for biogas (₹11 ($0.10)).</span></strong>

In monetary terms, on an average, every household saved ₹6,786 ($85) per year by cutting down on LPG usage per year. The minimum cost saved is ₹500 ($6) to as high as ₹19,000 ($240). With these savings, farmers can focus on providing for their children’s education, purchasing food, and managing other household costs.

<span style="color: #000000;"><em><strong>On average, each household with biodigesters reduced the usage of LPG by seven cylinders, which is about 85 percent of their petroleum gas consumption prior to using biodigesters.</strong></em> </span>

<strong><img class="wp-image-27694 alignright" src="https://content.accion.org/wp-content/uploads/2023/02/Picture2.png" alt="Replacing chemical fertilizers with bio-slurry reduces agricultural production costs" width="436" height="246" />Replacing chemical fertilizers with bio-slurry reduces agricultural production costs for women dairy farmers: </strong>Bio-slurry, a byproduct of biogas, is not only an environmentally friendly organic fertilizer but also an efficient use of waste material, following the waste management principles of reusing and recycling. All of the women dairy farmers participating in the study were aware of the benefits of bio-slurry and use it for growing crops both for commercial and household consumption purposes. <strong>In our research, we found that the</strong> <span style="color: #000000;"><strong>usage of</strong> <strong>chemical fertilizers was reduced on average by 650 kg or 1,433 lb. — about twice the weight of a large motorcycle — every year</strong>.</span>

<strong>Using biodigesters leads to a significant reduction in time spent on cooking, creating an opportunity to seek additional means for income or employment: </strong>Owing to social norms, women dairy farmers cook meals for the family at least three times a day using firewood, which takes close to three to four hours of travel time to collect. Installing and using a biodigester is simple and convenient, and the daily time spent on cooking is reduced significantly. <strong>It<span style="color: #000000;"> gives women dairy farmers the opportunity to spend their time more efficiently, allowing them to undertake productive and fulfilling activities that they were previously unable to consider,</span> like teaching or taking on tailoring work, for example.</strong><a href="#_ftnref1" name="_ftn1"></a>

Green energy provides a triple win for women dairy farmers in India

As underserved people face increasing uncertainty, we’re evolving our strategy to support them more effectively.

The world has changed so much over the past few years. The pandemic dealt a devastating blow to the global economy, <a href="https://www.worldbank.org/en/publication/poverty-and-shared-prosperity" target="_blank" rel="noopener noreferrer">impacting</a> low-income people hardest. And now, for the first time in our lifetimes, global poverty and hunger are on the rise and the threat of a prolonged global recession is creating new uncertainty. These trends will have major consequences for families, small businesses, and communities globally.

Accion’s work has never been more urgent. But as challenges evolve, so do solutions. After months of monitoring current trends, reflecting on lessons learned, and charting bold steps forward—with support from Bain &amp; Company—we are evolving our strategy to ensure our work has the greatest impact for underserved people globally.
<h2><strong>New challenges bring new opportunities</strong></h2>
While today’s challenges seem overwhelming, we’re also seeing powerful opportunities to build a fair, inclusive, and resilient economy. According to <a href="https://www.accion.org/three-takeaways-from-the-findex-and-three-next-steps" target="_blank" rel="noopener noreferrer">the 2021 Findex</a>, more than a billion people gained access to formal financial accounts over the past decade — thanks largely to a digital revolution accelerated by the pandemic. This is very encouraging progress.

As more people gain basic financial tools, they can use them to improve their lives — and access a broader suite of tools to build resilience. A farmer can purchase insurance to protect against climate disasters, a small business owner can access revolving credit to manage supply chain issues, and an aspiring doctor can save money for education.

Accion is uniquely positioned to maximize these opportunities — and respond to challenges. Through making investments in a wide range of businesses focused on delivering social impact, advising partners, and influencing the industry, Accion will catalyze capital and scale demonstration models that accelerate the reach and quality of responsible financial services for underserved people. We will focus our efforts on women, smallholder farmers, and small businesses, to help them build a brighter, more resilient future.

With governments and central banks focused on tackling inflation and cooling economies, private sector solutions are especially important. Accion will continue to find, support, and scale the world’s most innovative, inclusive financial service providers, leveraging capital, post-investment support, governance, and investments in digital transformation to ensure these companies provide the most useful and effective support to their clients. We’ll also expand our leadership in inclusive fintech, supporting innovative companies that harness new technologies like AI and data analytics to expand the reach, quality, and affordability of financial services.

While strengthening our current investing, advisory, and research work, we will put greater emphasis on supporting and exploring innovation across three areas:
<h3>1. Embedded finance</h3>
While traditional finance often requires customers to jump through hoops, <a href="https://www.accion.org/embedded-finance-more-than-a-trend" target="_blank" rel="noopener noreferrer">embedded finance</a> makes it possible to offer services to customers upfront, using their data to anticipate their needs and credit risk. For example, our fintech partner <a href="https://cashinvoice.in/" target="_blank" rel="noopener noreferrer">Cashinvoice</a> in India <a href="https://www.accion.org/a-digital-solution-unlocks-supply-chain-finance-for-msmes-in-india" target="_blank" rel="noopener noreferrer">leverages</a> data on small businesses to embed supply chain financing products in large platforms that small businesses already use. This innovative practice has the potential to seamlessly equip millions of underserved people with the financial tools they need to improve their lives.

Going forward, we will seek to create new entry points for embedded finance in platforms our clients already use, like retailers selling seeds to smallholder farmers, and focus on areas of the MSME value chain with the most pain points. We will focus our efforts on small businesses, with an emphasis on farmers and women.
<h3>2. Agtech</h3>
<a href="https://www.worldbank.org/en/topic/agriculture/overview" target="_blank" rel="noopener noreferrer">Two thirds</a> of the world’s working poor make a living through agriculture, and they are increasingly vulnerable to climate change. By equipping farmers with new financial tools and digital capabilities, we can help them build resilience. We’ve seen great results through <a href="https://www.accion.org/with-support-from-fintech-farmers-can-grow-an-inclusive-global-recovery" target="_blank" rel="noopener noreferrer">our work</a> with fintechs like <a href="https://www.pula-advisors.com/" target="_blank" rel="noopener noreferrer">PULA</a> and <a href="https://www.apolloagriculture.com/" target="_blank" rel="noopener noreferrer">Apollo Agriculture</a> that leverage technologies including satellite imaging and mobile apps to equip smallholder farmers across sub-Saharan Africa with crop insurance, customized advice, and credit. We’ve also deepened the impact of microfinance providers like <a href="https://genesisempresarial.org/" target="_blank" rel="noopener noreferrer">Fundación Génesis Empresarial</a> in Guatemala and <a href="https://www.dvarakgfs.com/" target="_blank" rel="noopener noreferrer">Dvara KGFS</a> in India that provide credit and other financial services to farmers.

Going forward, we’ll explore targeting other service providers within the value chain, including aggregators, farmer-allied intermediaries, and distributors, to help them serve farmers more effectively. We can also leverage Accion’s expertise in consumer protection to help smallholder farmers better apply digital financial solutions to build their financial health.
<h3>3. The future of work</h3>
Increasingly, people are earning a living through non-traditional employment models, including gig or informal work, and they are particularly vulnerable to financial shocks. By nurturing financial service providers focused on these populations, we can help them gain a stronger foothold in the economy and strengthen their resilience. For example, our fintech partner <a href="https://myrobin.id/" target="_blank" rel="noopener noreferrer">MyRobin</a> has <a href="https://www.accion.org/improving-the-lives-of-blue-collar-workers-in-indonesia-through-a-digital-platform" target="_blank" rel="noopener noreferrer">created</a> a digital platform that provides blue-collar workers in Indonesia with access to fair employment opportunities, training, and financial services that strengthen their resilience and advance their careers, and our partner <a href="https://www.ugafode.co.ug/" target="_blank" rel="noopener noreferrer">UGAFODE</a> in Uganda is <a href="https://www.accion.org/refugees-rebuild-in-uganda" target="_blank" rel="noopener noreferrer">helping</a> refugees start businesses and access financial tools.

In the short-term, Accion will begin exploring opportunities to support workers shifting from informal to formal work through gig work platforms, prioritizing platforms that cater to women. In the long-term, we may also consider the global implications of automation, migration, and displacement on the workforce—and how solutions like cross-border payments and upskilling can help these workers build their financial health.
<h2><strong>Accelerating change through knowledge and collaboration</strong></h2>
Sharing our knowledge is critical to creating systemic change. Through rigorous research conducted by the <a href="https://www.centerforfinancialinclusion.org/preparing-msmes-for-future-crises-lessons-from-covid-19" target="_blank" rel="noopener noreferrer">Center for Financial Inclusion</a>, and by sharing insights we gather through our work with partners around the world, we will share best practices and evidence that supports a more effective, responsible, and inclusive financial system, and products that are people-focused.

Through convenings like <a href="https://financialinclusionweek.org/" target="_blank" rel="noopener noreferrer">Financial Inclusion Week</a>, we’ll continue to engage and influence stakeholders across our thematic priorities of <a href="https://www.centerforfinancialinclusion.org/research/consumer-protection" target="_blank" rel="noopener noreferrer">consumer protection</a>, <a href="https://www.centerforfinancialinclusion.org/research/womens-financial-inclusion" target="_blank" rel="noopener noreferrer">women’s financial inclusion</a><em>, </em><a href="https://www.centerforfinancialinclusion.org/research/data-risks-and-opportunities" target="_blank" rel="noopener noreferrer">data management</a>, and <a href="https://www.centerforfinancialinclusion.org/research/financial-services-to-mitigate-and-adapt-to-climate-risks" target="_blank" rel="noopener noreferrer">climate resilience</a>. In the future we’ll also explore the impact of new innovations—including those in embedded finance, agtech, and the future of work—to better gauge the effectiveness of our own work, and promote demonstration models that enable providers to better serve their clients.

Accion’s greatest strength is its people. We will continue to ensure our employees have the respect and resources they need to achieve excellence and execute their passion for social change. To deepen our impact and efficiency, we’ll also promote more learning and collaboration across the organization and our networks. This way, we can draw new connections and form new partnerships, like supporting a microfinance bank as they <a href="https://www.accion.org/scale-financial-inclusion-through-strategic-partnerships" target="_blank" rel="noopener noreferrer">apply a fintech startup’s gamification technology</a> to increase customers’ savings rates.

I’m excited to work with our team to scale our impact. The future is uncertain, but the challenges of the past have granted us new lessons, powerful tools, and greater resolve to support people with the most urgent needs. Your support powers everything we do—and I welcome you to <a href="https://www.accion.org/get-involved">join us</a> on this exciting and important journey.

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