A research study by Accenture and CB Insights stated the fact that global investment in FinTech ventures tripled to $12.21 billion in 2014 in one year. The emerging trends for FinTech include lending, money transfer, APIs, machine learning, blockchain, bitcoin, risk & security, biometrics authentication, payment processing and more. FinTech is evolving rapidly not only in the US but also in countries like China, India, Singapore, UK and Israel. Investors are continuously looking for the next big thing in the financial industry. While there are VC firms like Green Visor Capital and BBVA Ventures who are exclusively focused on investing in FinTech startups, there are big players like Accel Partners and KPCB who are increasingly investing in FinTech startups.
In their own words: “Accion is a global nonprofit dedicated to building a financially inclusive world with economic opportunity for all, by giving people the financial tools they need to improve their lives. We are building the next generation of top-tier microfinance institutions, and over the last 50 years have helped create 64 such institutions in 32 countries on four continents that today reach millions of clients. Our impact investing initiatives are pushing beyond microfinance to catalyze more than 20 innovative startups dedicated to improving the efficiency, reach and scope of financial services for the poor. And our Center for Financial Inclusion is helping to build a stronger industry with high standards. Currently, our work spans nearly two dozen countries, including the US, where we are the nation’s largest nonprofit microfinance network."
Last year, the company invested in seven new companies (which brings the total to 23 portfolio companies) and also made four follow-on investments.
Venture Lab Portfolio: Artoo, AYE Finance, Clip, Coda , Community Investments Management, CreditMantri, Demyst Data, eMoneyPool, First Access, GO Finance, Intoo, Konfio, Kopo Kopo, LendStreet, MeraDoctor, Quippi, RevolutionCredit, Salud FÁCIL, SMECorner, Street Shares, Tienda Pago, Umati Capital, Varthana
The VC firm made its 23rd investment in Tienda Pago. Accion made the investment through Venture Lab, a $10-million initiative dedicated to providing seed capital and management support to innovative startups that expand financial access to the poor and underserved.
Tienda Pago, currently operating in Peru, provides micro and small enterprises with short-term working capital to fund inventory purchases from distributors. Tienda Pago partners with major fast-moving consumer goods (FMCG) distributors that serve these businesses, and has developed a closed-loop payment mechanism using cell phones, enabling distribution companies to collect electronically and reduce inefficiencies and costs. Tienda Pago's solution enables store owners to increase their key inventory, improve revenue and develop a formal credit history.