Press Release

Washington, DC, April 12, 2021 – Global nonprofit Accion announced today that Amee Parbhoo has been promoted to the role of Managing Director at Accion Venture Lab, Accion’s impact investment fund manager for seed-stage inclusive fintech startups. Venture Lab provides capital and extensive support to innovative, scalable fintech startups that improve the reach, quality, and affordability of financial services for the underserved.

“After a global search, I am thrilled to announce the promotion of Amee Parbhoo as the new Managing Director of Accion Venture Lab. She is the right person to lead us in its next exciting chapter,” said Michael Schlein, President and CEO of Accion. “As the former Director of Investments, Amee helped to build Accion Venture Lab into a global leader in seed-stage investing in fintech for financial inclusion. By bringing capital and operational guidance to startups finding new ways to reach the world’s three billion financially underserved people, we aim to create a financially inclusive world in our lifetime.”

“I am excited to work with Amee as she continues to build our global portfolio of high-quality seed stage fintech startups and advance Accion’s mission of financial inclusion, especially as Venture Lab focuses on the impact of financial services on broader human needs,” said Esteban Altschul, Chief Operating Officer of Accion and chair of Venture Lab’s Investment Committee.

“Inclusive fintech startups are finding better ways to reach and serve financially underserved people and small businesses, and Venture Lab plays a critical role supporting these innovators at an early stage. I'm excited to expand our portfolio and our impact,” said Amee Parbhoo, Managing Director of Accion Venture Lab.

In her tenure with Accion, Amee has managed Venture Lab's investment activities globally, as well as led Venture Lab’s governance and investments in Africa.  Prior to joining Accion, she was a consultant at McKinsey &amp; Company, worked on new products and technology at SKS Microfinance in India, and advised a range of fintech and financial inclusion enterprises around the world. She has a B.A. from Davidson College and an MBA from The Wharton School at University of Pennsylvania.

Created in 2012 by Accion and backed by commercial and impact investors since the launch of its third-party fund in 2019, Venture Lab has emerged as a leading seed-stage investor in fintech for the underserved. Venture Lab creates value in its portfolio by providing investees with strategic and operational support across a broad range of functional areas. To-date, Venture Lab has deployed over US $30 million across 52 early-stage startups that operate in more than 30 countries worldwide. As a result of Venture Lab’s investments, more than 18.5 million consumers and small businesses have benefited from the formal financial sector; 2.1 million individuals have been insured; and people have put US $166 million into savings.

About Accion
Accion is a global nonprofit committed to creating a financially inclusive world, with a pioneering legacy in microfinance and fintech impact investing. We catalyze financial service providers to deliver high-quality, affordable solutions at scale for the three billion people who are left out of — or poorly served by — the financial sector. For 60 years, Accion has helped tens of millions of people through our work with more than 160 partners in 55 countries. More at <a href="http://www.accion.org/">http://www.accion.org</a>.
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Accion appoints Amee Parbhoo as Managing Director of Accion Venture Lab

Esteban Altschul

News

<div class="card__paragraph">

Originally published on <a href="https://www.bnamericas.com/en/news/accion-plans-latam-fintech-investments-to-support-financial-inclusion-amidst-pandemic" target="_blank" rel="noopener noreferrer">BNamericas</a> by <a href="https://www.bnamericas.com/en/profile/urindebro" target="_blank" rel="noopener noreferrer">Ulric Rindebro</a>

Financial inclusion-focused nonprofit Accion will invest in several Latin American <a href="https://www.bnamericas.com/en/news/tech-investment-seen-as-way-to-combat-financial-crime-and-support-inclusion-too" target="_blank" rel="noopener noreferrer">fintechs</a> this year as a way to support micro entrepreneurs battling with the economic fallout of the <a href="https://www.bnamericas.com/en/analysis/pandemic-drives-technological-overhaul-of-latam-economies" target="_blank" rel="noopener noreferrer">COVID-19 pandemic</a>.

Based in Cambridge, Massachusetts, Accion approved 10 fintech investments last year and it expects to approve between eight and 10 investments in 2021, Esteban Altschul (in photo), the organization’s chief operating officer, told BNamericas.

“The investment pipeline is very strong as the pandemic has accelerated the need for digital tools in the process to improve financial inclusion,” said Altschul, who is also chair of Bolivia’s largest micro credit provider, <a href="https://www.bnamericas.com/en/company-profile/banco-solidario-sa-bancosol" target="_blank" rel="noopener noreferrer">BancoSol</a>.

Accion’s financial inclusion strategy is focused on making equity investments in fintechs and microfinance institutions (MFIs) to help these firms expand and incorporate more low-income individuals as customers.

As a strategic shareholder, Accion also transfers knowledge and international best practices to its local fintech and MFI partners in Latin America and other regions. Worldwide, it operates in 55 countries through more than 160 partner institutions.

In Latin America, Accion has invested in 24 financial inclusion-focused fintechs to date. These have been made through its seed-stage fintech investment initiative Accion Venture Lab, as well as investments made by funds for which Accion is sponsor and general partner: the Accion Frontier Inclusion Fund and Accion Quona Inclusion Fund, both third party funds managed by Quona Capital.

The fintechs that Accion have invested in have been less affected by the pandemic than the MFIs that it supports given their more flexible and agile nature, said Altschul.

Fintechs in Brazil, Chile, Colombia, Mexico, Peru and Uruguay stepped up their game in 2019 and last year after having lagged behind other emerging market regions in terms of coming up with creative solutions, he said. “We’re catching up quickly and the region’s fintech sector has become very attractive for investors, offering high returns.”

This year Accion is not planning any new equity investments in Latin American MFIs, opting instead to focus on helping these institutions with their digital transformation, said Altschul.

“Digital transformation and fintech is core and central to everything that Accion does today,” he added.
<h3>Pandemic impact</h3>
Latin America is among the regions in the world that have seen the biggest economic fallout of the health crisis.

Accion’s partner MFIs serving micro entrepreneurs have shown a resilience that is both surprising and impressive, according to Altschul.

Around 70-80% of these MFIs have responded “extremely well” and there have been no bankruptcies among the institutions that Accion supports in the region, he said.

However, the pandemic has had a “huge impact” on the region’s micro enterprise sector with an estimated 20% of the customers served by Accion’s partner MFIs having gone out of business, he said.

“Micro entrepreneurs have been the biggest victims of the economic fallout of the pandemic in Latin America,” said Altschul, who is a former principal investment officer at the <a href="https://www.bnamericas.com/en/company-profile/international-finance-corp" target="_blank" rel="noopener noreferrer">IFC</a>, the private sector arm of the <a href="https://www.bnamericas.com/en/company-profile/the-world-bank-group-grupo-del-banco-mundial-world-bank-banco-mundial" target="_blank" rel="noopener noreferrer">World Bank</a>.

The recovery of the region’s micro enterprise sector will take longer than initially expected and a strong focus of Accion in the next few years will be to help micro entrepreneurs find new business opportunities, leveraging digital financial products and services, he said.

Accion may postpone the planned exits from several of its investments in MFIs by two or three years as these entities continue to adjust to new ways of operating and support clients hit by the pandemic, Altschul added.

Given the large number of enterprises and individuals who are still excluded from the financial system in Latin America, Altschul said he believes there is more than enough room for MFIs and fintechs to co-exist and there are increasing opportunities for them to work together through partnerships.

</div>

Accion plans LatAm fintech investments to support financial inclusion amidst pandemic

The CDC Group, a development finance institution (DFI) and an impact investor in the UK, has partnered with <a class="storyTags" href="https://www.business-standard.com/topic/northern-arc-capital" target="_blank" rel="noopener noreferrer">Northern Arc Capital </a>for its first-ever pooled bond issuance (PBI) transaction in India. The PBI worth Rs 320 crore will support six leading Indian microfinance institutions.

CDC’s investment in the transaction is supported by a partial guarantee provided by Northern Arc. It is a milestone for CDC as it is the first transaction structured by CDC under a PBI structure, according to a release.

Read more about Accion portfolio company, Northern Arc Capital, <a href="https://www.business-standard.com/article/companies/cdc-group-partners-with-northern-arc-capital-for-first-pooled-bond-issuance-121033100189_1.html" target="_blank" rel="noopener noreferrer">in Business Standard</a>.

CDC Group partners with Northern Arc Capital for first pooled bond issuance

Asian Development Bank-backed Annapurna Finance has mobilised $30 million in equity from US-based impact investor Nuveen Global Impact as the lender looks to grow its stake amid the bottom of the pyramid borrowers.

The Bhubaneswar-based micro lender had a gross loan portfolio of Rs 4466 crore as of December 2020, making it the country's seventh largest NBFC-MFI.
<div>Read more about Accion portfolio partner, Annapurna Finance, <a href="https://economictimes.indiatimes.com/markets/stocks/news/annapurna-finance-mobilises-30-mn-in-equity-from-nuveen-global-impact/articleshow/81758220.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst" target="_blank" rel="noopener noreferrer">in Economic Times</a>.</div>

Annapurna Finance mobilises $30 mn in equity from Nuveen Global Impact

Mastercard and Harvard Business Review Analytic Services Research identifies insights, methods, risks in remote collaboration, enhanced security and customer experiences

Purchase, NY, March 30, 2021 — The increased demand for digital-first solutions and more customized experiences over the past year has led companies to place a greater emphasis on innovation. In the second edition of the Become Index, 53% of executives say their organizations place a high priority on innovation. Close to half of businesses surveyed (42%) responded to the need by increasing innovation budgets. They developed new ways to keep workers safe and novel paths to connect with and cater to customers while safeguarding customers’ health and peace of mind.

Become, sponsored by Mastercard and powered by the Harvard Business Review Analytic Services Business Innovators Index, is an annual, long-term innovation research initiative. It provides the actionable insights and roadmap needed to spark innovation, all informed by the extensive research and diverse input from consumers and key innovative businesses around the globe.

In its second edition, Become surveyed more than 1,800 business leaders and more than 10,000 consumers around the world and across industries to identify the traits demonstrated by the most innovative companies:
<ul>
 	<li>Digital Agility: Keeping up with accelerated digital adoption and real-time customer needs, especially touchless experiences</li>
 	<li>Surround-Sound Analytics: Making data-driven decisions the lifeblood of the organization</li>
 	<li>Ironclad Data Security: Protecting customers and their data</li>
 	<li>Strategic Investing: Taking intentional risks and accepting failure as part of the process</li>
 	<li>Customer Proximity: Keeping customers close as a guiding force for innovation
</li>
</ul>
Alex Clemente, Harvard Business Review Analytic Services (HBR-AS) managing director says, “As the world continues to emerge from the pandemic’s long shadow, the pace and speed of innovation has brought on new opportunities, but also some challenges. Many organizations have proven they can be fast, agile, and emerge stronger to whatever awaits next, but there are some gaps in what businesses saw important and what consumers need during and after the pandemic. I believe business and society are now forced to redefine what it means to be innovative. And businesses everywhere should re-evaluate if the new-found velocity and pace of change can be sustained.”

If companies are to excel into the future, addressing today’s risks and consumer demands include focusing on five key areas:
<ul>
 	<li>Build back with humanity. Research finds that 71% of consumers say they are more likely to buy from brands that reflect their values and provide excellent care for their customers and employees.</li>
 	<li>Break barriers to remote collaboration – More than one-third (38%) of executives cite working remotely as a challenge to future innovation and growth. A distributed set of teams not only presents barriers to collaboration—especially the informal teamwork that can blossom amid casual encounters—but also can keep people removed from tools and facilities that support innovation.</li>
 	<li>Prioritize innovation investments. Despite the gains made in vaccines and therapeutics, one of the most common challenges to innovation is an uncertain economic outlook and potential loss of revenue. More than half of respondents (63%) cite uncertain economic outlook and nearly half (46%) cite revenue loss as challenges to innovation, thus making it harder to decide which innovation efforts to pursue and which to table.</li>
 	<li>Prevent a security and data privacy pandemic. It’s no doubt that trust and peace of mind are highly important, ranking third on the priority list behind health and safety, and convenience. Yet only 37% of organizations indicated they have recently or plan to soon invest in data privacy and cybersecurity management to improve the customer experience. Similarly, only 35% of survey respondents say recent investments in data privacy and security were made in response to the pandemic.</li>
 	<li>Personalize customer proximity. More than a third (36%) of consumers are willing to share more personal information if it means a more immediate, personalized customer service experience. Being close to and truly understanding the customer’s needs can be supported through investments in predictive, data-driven, and real-time digital tools.
</li>
</ul>
Michael Miebach, CEO at Mastercard says, “This report shows that people are demanding real action. The world has changed from the pandemic, and people have less patience for just talk. As we’ve seen in these findings, many businesses aren’t meeting that expectation and so will need to work harder to do so.”
#####

Pandemic Drives Increased Velocity of Innovation, Brings New Challenges and Consumer Demands for Customization

UAE-based fintech startup NOW Money has secured $7 million in a funding round led by venture capital firm Anthemis Exponential Ventures, taking its total funding since inception to $8.5 million.
Founded in 2016 by Ian Dillon and Katharine Budd, NOW Money uses mobile banking technology to create accounts, low-cost remittance facility, and other financial services for migrant workers.
Read more about Accion portfolio company, NOW Money, <a href="https://www.forbesmiddleeast.com/innovation/startups/fintech-startup-now-money-secures-%247m-to-expand-across-the-gcc" target="_blank" rel="noopener noreferrer">in Forbes Middle East</a>.

UAE-Based Fintech Startup NOW Money Raises $7M To Fuel Growth

<a href="https://nowmoney.me/" target="_blank" rel="noopener noreferrer">NOW Money</a>, a UAE-based digital account service, announced on Monday it raised $7 million through its latest investment round, which was led by Anthemis Exponential Ventures with participation from  Knuru Capital, Wamda, Commercial Bank of Dubai, DIFC FinTech Fund, Accion Venture Lab, Greenhouse Capital, and Hambro Perks Oryx Fund.
Founded in 2016, NOW Money claims it uses “cutting-edge” mobile technology to improve the lives of low-income migrant works in the UAE.
Read more about Accion portfolio company, NOW Money, <a href="https://www.crowdfundinsider.com/2021/03/173714-uae-bank-account-service-now-money-raises-7-million-through-latest-investment-round-led-by-anthemis-exponential-ventures/" target="_blank" rel="noopener noreferrer">in Crowdfund Insider.</a>

UAE Bank Account Service NOW Money Raises $7 Million Through Latest Investment Round Led By Anthemis Exponential Ventures

<ul>
 	<li>NOW Money raises $7m in a funding round led by Anthemis Exponential Ventures.</li>
 	<li>Investment will drive NOW Money’s expansion into the Kingdom of Saudi Arabia and beyond.</li>
 	<li>Funding round is the most significant, multinational fintech deal to date in the Middle East.</li>
 	<li>NOW Money provides unbanked workers with access to the digital economy for the first time.</li>
</ul>
Dubai, United Arab Emirates, March 29, 2021 – <a href="https://nowmoney.me/" target="_blank" rel="noopener noreferrer">NOW Money</a>, the GCC’s first digital banking solution for low-income migrant workers, has secured $7m in a funding round led by venture investor, <a href="https://www.anthemis.com/">Anthemis Exponential Ventures</a>.

Anthemis Exponential Ventures was joined by a consortium of investors including <a href="https://www.knuru.com/">Knuru Capital</a>, <a href="https://www.wamda.com/en/wamda-investments">Wamda</a>, <a href="https://www.cbd.ae/">Commercial Bank of Dubai</a>, <a href="https://fintechfund.difc.ae/">DIFC FinTech Fund</a>, <a href="https://www.accion.org/">Accion Venture Lab</a>, <a href="http://greenhousecap.com/">Greenhouse Capital</a> and <a href="https://www.hambroperks.com/">Hambro Perks Oryx Fund</a>, amongst others. NOW Money also received supporting funding from <a href="https://www.expo2020dubai.com/en/programmes/expo-live">Expo 2020</a> and card scheme, <a href="https://ae.visamiddleeast.com/en_AE/visa-everywhere/fintech.html">Visa</a>.

The funding raised by NOW Money is the most significant, multinational fintech deal to date in the Middle East.

The cash injection will initially be used to drive NOW Money in the Kingdom of Saudi Arabia, beginning with strategic new hires and local infrastructure in Riyadh. In addition, the funding will enable NOW Money to develop its service offering and enable it to continue its exponential growth in the UAE.

Founded in 2016, NOW Money is the first fintech company in the Gulf to use mobile banking technology to provide accounts, low-cost remittance, and other financial services to migrant workers.

Co-founder of NOW Money, Ian Dillon, said: “This funding is a significant milestone for NOW Money. We are eager to build on our progress to date and realize our vision of creating a world where everyone has instant access to financial services they can, and want, to use. The investment has brought us the financial support needed to scale our expansion plans across the GCC, as well as strategic value and partnerships from each of our investors.

“There is no venture capital better placed than Anthemis Exponential Ventures to have led this deal, especially alongside other such high calibre Western and Middle Eastern funds. Two of our key partners, Commercial Bank of Dubai and Visa, have also played a critical role.”

The deal was led by Vica Manos of Anthemis Group, the world’s leading fintech investor, committed to cultivating change in the financial system.

Vica Manos, Partner at Anthemis Group, said: “One of the most impactful actions a company can take is to provide fair and sustainable access to finance, and NOW Money does exactly that. By opening up financial services to some of the most deeply left-out individuals, we’re confident that Katharine, Ian and the rest of the team can achieve genuine impact, changing the face of financial services in a region that right now is showing tremendous promise."

Alain Dib, CEO of Knuru Capital, said: “We were impressed by how NOW Money has solved many challenges and pain points, working with numerous stakeholders and partners to now be in a position to scale dramatically and bank millions of unbanked. We are very excited to be part of the journey.”

NOW Money partners with businesses to provide an end-to-end digital payroll solution. Every company has access to a unique payroll portal - a hassle-free way to transfer employee salaries and other financial-based rewards – and every employee is issued with a contactless-enabled Visa card and receives their salary directly into the NOW Money app. NOW Money gives all customers in-app access to low-cost financial services including mobile top-up, bill pay and remittance, the latter of which enables a quick, safe and cost-effective way to remit money overseas.

Katharine Budd, co-founder of NOW Money, said: “When we started NOW Money in 2016, our mission was clear; simplify the world’s financial services. Initially, we were met with skepticism about a digital financial service, but the success of mobile money in South and East Asia gave us faith that mobile banking would be a sustainable solution for the millions of people who find themselves overlooked by traditional Middle Eastern banking options. We are excited to expand our team and build our customer and partnership base to truly democratize financial services and make money easy, for everyone, every day.”

“In 2020, engagement with the NOW Money app doubled as our customers sought to make use of online services like remittances, in-app purchases and transactions. The restriction of movement forced upon the world due to the COVID-19 pandemic accelerated digital as consumers’ transaction channel of choice and these habits are likely to remain ingrained long after Coronavirus. For financial services it has proven that digital solutions are more than a luxury, they are an urgent necessity.”
###

UAE-based fintech NOW Money secures $7m to expand digital banking solution across the GCC

Last week, The Information <a href="https://www.theinformation.com/articles/altimeter-to-lead-plaid-deal-after-scrapped-visa-merger">reported</a> that Plaid is nearing a new financing deal that would value the company at between $10 billion to $15 billion. Beyond a high valuation, Plaid sports a key characteristic that positions it well to help early-stage startups: it has gone through regulatory hurdles. Months ago, Plaid announced it would not merge with Visa in what would have been a $5.3 billion acquisition. This event, as well as advice on how private fintech startups can deal with policy issues, will be part of FinRise programming.

While participants don’t get funding, FinRise has collated a number of “capital access partners,” which basically means investors who are committed to meeting with these companies and potentially writing a check. This network includes Accion, Acrew, Amex Ventures, Flourish, Harlem Capital, Kapor, Matrix, Village Capital, Visible Hands and First Round.

<a href="https://techcrunch.com/2021/03/24/plaid-accelerator-announces-inaugural-cohort-of-fintech-startups/" target="_blank" rel="noopener noreferrer">Read more in TechCrunch.</a>

Plaid accelerator announces inaugural cohort of fintech startups

Paolo Limcaoco

Due Diligence (DD) is an inevitable part of an investment process. In the VC parlance, DD is about the investor and the startup getting to know each other and getting into a comfort level. DD is a long process and often takes weeks or months to complete.

In this episode of e27‘s Fundraising Fundamentals webinar series, Paolo Limcaoco, Investment Officer at Accion Venture Lab (a fintech VC firm), talks about the three aspects of the process.

<a href="https://e27.co/due-diligence-is-like-dating-before-the-long-term-marriage-accion-venture-labs-paolo-limcaoco-20210323/" target="_blank" rel="noopener noreferrer">Listen on e27's website. </a>

‘Due diligence is like dating before the long-term marriage’: Accion Venture Lab’s Paolo Limcaoco

Non-banking financial company Dvara KGFS on Monday said it has raised 8 million euros ($9.52 million) from social impact funds Invest In Visions (Germany) and Darlehnskasse Münster (Luxembourg).

<a href="https://www.vccircle.com/olympus-capital-triodos-others-invest-pre-ipo-money-in-utkarsh-small-finance-bank" target="_blank" rel="noopener noreferrer">Read more in VCCircle.</a>

Stakeboat-backed Dvara KGFS raises money from European impact funds

Nairobi-based ACRE Africa and Pula, Bamako, Mali-based Oko Finance and other African tech companies are facilitating access to crop insurance to help smallholder farmers secure their livelihoods against flood and drought.

<a href="https://impactalpha.com/alt-credit-and-mobile-money-apps-give-african-fintechs-a-closeup-view-of-climate-risks-and-opportunities/" target="_blank" rel="noopener noreferrer">Read more in ImpactAlpha.</a>

Alt-credit and mobile-money apps give African fintechs a closeup view of climate risks – and opportunities

The Myanmar junta's violent response to civil disobedience — and its effect of the economy. It’s a tough time for doing business in Myanmar. The economy was already struggling with the impacts of the pandemic — and has been hit hard by almost daily protests. So how are local companies coping? Lucy Hockings spoke to businesswoman Thiri Thant Mon who's based in Yangon.

DAWN Board member Thiri Thant Mon<a href="https://vimeo.com/522360938" target="_blank" rel="noopener noreferrer"> speaks to BBC World News. </a>

BBC World News: Myanmar’s violent crackdown and its impact on the economy

In late 2019, Mexico City-based fintech company <a href="https://clip.mx/" target="_blank" rel="noopener noreferrer">Clip</a> announced a multiyear partnership with Visa to scale its Square-like mobile credit-card processing service for small and medium-size businesses. In response to the COVID pandemic and declining in-person transactions, the company (which has raised close to $150 million from SoftBank, General Atlantic, and Google for Startups Accelerator) introduced a remote payment system that lets vendors send invoices by text, email, Facebook Messenger, and Whatsapp, with payment through a secure transaction portal.

Fast Company includes Clip, an Accion Venture lab portfolio company, <a href="https://www.fastcompany.com/90600367/latin-america-most-innovative-companies-2021" target="_blank" rel="noopener noreferrer">in this roundup of innovative Latin American companies.</a>

The 10 most innovative Latin American companies of 2021

Chennai-based digital debt platform Northern Arc on Tuesday announced it has received $50 million in debt financing from US International Development Finance Corporation (DFC).    The first tranche of $25 million was made available in December and the remaining $25 million was disbursed recently.

The funds will be deployed for on-lending to financial institutions, as well as lending directly to retail customers through the co-lending product and to mid-market corporates.

<a href="https://yourstory.com/2021/03/funding-alert-northern-arc-debt-financing-us-international-development-finance-corporation" target="_blank" rel="noopener noreferrer">Learn more in this article from YourStory.</a>

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