The Accion Digital Transformation Fund was launched to support financial institutions with growth capital and strategic advisory, positioning them to serve micro, small, and medium size businesses that are currently excluded from the digital economy. In 2023, Accion Digital Transformation announced an investment in IKF Finance, to accelerate growth, ESG, and digital transformation.
Aiming to meet the unique needs of small business owners in India, IKF Finance supports first-time commercial vehicle owners, small road transport operators, and other entrepreneurs through innovative, affordable, and tailored financial products. Accion Digital Transformation is now pleased to announce an exit from IKF Finance. This exit seeks to catalyse IKF Finance’s next phase of growth, now backed by Creador, a major private equity investor that has acquired stakes from Accion Digital Transformation Fund and its limited partner.
“IKF Finance is a strong example of how social and financial objectives can combine to drive financial inclusion at scale,” says Abhishek Agrawal, Managing Partner of Accion Digital Transformation. “We are excited for Creador’s entry into IKF Finance and are glad that during our investment, we have been able to help the company on governance, ESG, and digital transformation, enabling it to expand and better serve its customers.”
A women-led company, IKF Finance has consistently delivered growth while maintaining strong asset quality in the industry since its beginnings in 1991. Over the two and a half years of this partnership alone, its impact has been evident through successful commercial capital raise from Norwest in May’2025 and the stories of the small businesses and families it serves. According to the 2024 Microfinance Index from 60 Decibels, IKF Finance ranked in the top 20 percent across Asia for increasing business income and enabling job creation. These results underscore the organization’s deeper contribution: opening doors for individuals and small businesses to grow and spark ripples of economic opportunity within their communities.
One powerful example of this impact is Narasimharaju, an entrepreneur from Karnataka’s Channapatna district, who beams at his fleet of three vehicles, which he uses to transport milk and move local agricultural produce during off-peak hours. Seeking ways to supplement his income, he began a modest milk delivery business, but steep vehicle costs and mounting maintenance expenses made growth difficult, and repeated loan applications to traditional banks were rejected due to strict collateral requirements and limited credit history.
Encouraged by the success of his first vehicle loan, which was also offered only by IKF, Narasimharaju went on to access multiple loans through IKF, totalling ₹39.70 lakhs. Today, he regularly sets aside funds for his children’s education, enjoys improved living conditions, and ensures his parents’ health needs are supported. “Because of IKF’s timely support, I’ve been able to stand on steadier ground, both in my business and at home. It has given me the courage to imagine a brighter future for my children,” he shares, his confidence unmistakable.
IKF Finance’s impact extends beyond funding for small transport businesses, including other financial needs like housing products through its 100 percent owned subsidiary, IKF Home Finance Ltd, which caters to the need of affordable home finance. Consider Jayshree Nagesh Narote from Bardoli, Gujarat, one among many households traditionally excluded from mainstream housing credit due to limited collateral and thin credit histories. Each month, the earnings from her small convenience store were used for the small houses she rented with her two daughters.
In April 2025, Jayshree discovered IKF’s home finance product and received a loan of ₹8,00,000, which she used to purchase her own home. Today, she and her daughters live in a bright, spacious house with a small garden — an upgrade that has transformed their quality of life in many ways. Freed from rent-related stress, Jayshree now focuses on strengthening her business and building savings, ensuring her daughters can pursue a strong education. As she repays her loan, she’s building a strong credit history and secure financial future. Reflecting on her journey with IKF Finance, she shares: “They made my dream of a home come true.”
Narasimharaju and Jayshree’s stories reflect the transformative power of inclusive, thoughtfully designed, and most importantly, customer-centric financial solutions. IKF Finance’s commitment to meeting customers where they are — supported by like-minded partners like Accion Digital Transformation Fund, and now, Creador — demonstrates how responsible finance can overcome systemic barriers, unlock economic mobility, and integrate social and financial objectives to power financial inclusion at scale.
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