Venture capital firm Quona Capital Management and US non-profit Accion International have hit the first close of its new VC fund at $87.75 million, according to an SEC filing.
Accion Quona Inclusion Fund LP, launched in September with a target of $225 million, has attracted 14 commitments as it continues to invest in financial technology startups with a focus on Asia, Latin America, and emerging markets.
The first close comes 18 months after Accion and Quona raised $141 million for Accion Frontier Inclusion Fund, which focuses on companies that provide financial services such as alternative credit, payments, insurance, and small and medium enterprise finance.
Accion Frontier Inclusion Fund received a $15-million commitment from the International Finance Corporation (IFC), a member of the World Bank Group. Managed by Quona Capital, the fund will invest in startups that target emerging markets in sub-Saharan Africa, Latin America, and Asia.
The fund has invested in eight companies to-date including Konfio, a company that uses data analytics to offer working capital loans to micro-businesses in Mexico. It has also backed Yoco, a South African payments company that is seeking to expand acceptance of digital payments in Africa.
The fund has invested in some Southeast Asian and Indian companies: Philippines based mobile payments platform Coins, India-based NeoGrowth, IndiaMART, CreditMantri.
For the latest fund, Accion and Quona said the minimum investment accepted from outside investors is $1 million. The fund will be managed by Livingston Parsons III, Chief Financial Officer of Accion.
Accion is a global nonprofit committed to creating a financially inclusive world, with a pioneering legacy in microfinance and fintech impact investing. It works closely with Quona Capital, a venture firm focused on financial technology for inclusion in emerging markets.
On its website, Quona said it was formed with a simple idea – technology has the power to radically improve the quality, access, and affordability of financial services for underserved consumers and businesses in Sub-Saharan Africa, Latin America, and Asia.
About three billion people are left unserved or poorly served by the global financial system. According to the World Bank, only 46 per cent of adults in South Asia and 69 per cent of adults in East Asia and the Pacific (developing only) have a bank account.
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