US-based Accion Ventures has finalized a $61.6 million investment fund aimed at backing early-stage startups in Africa and other emerging markets. The venture capital arm of Accion nearly doubled the size of its first fund, which raised $33 million in 2019.
The new fund secured backing from several major institutions, including the Dutch development bank FMO, France’s Proparco, the Ford Foundation, Mastercard, and MetLife.
Accion plans to invest up to $1 million per startup, with a focus on fintech solutions that promote financial inclusion. Even before the final close, the fund had already invested in PaidHR, a Nigerian payroll management platform, and Flowcart, a Kenyan e-commerce venture previously known as Sukhiba.
Accion’s earlier fund was fully deployed and recorded successful exits from three African companies: Apollo Agriculture in Kenya, Lula in South Africa, and Pula, an agricultural insurance provider also based in Kenya. These exits highlight the strength of Africa’s entrepreneurial ecosystem and the growing investor interest in the region.
This year has seen several other funds launched to support African ventures, including Equator’s $55 million climate-tech fund, LoftyInc’s $43 million fund, and Endeavor Catalyst’s $300 million fund. Larger funds such as Partech Africa’s $300 million and Norrsken22’s $205 million are also still in play.
Although Africa’s startup funding remains below the 2022 peak of nearly $5 billion, activity between January and June 2025 suggests that the sector could surpass last year’s low of $2.2 billion.
Accion co-managing partner Amee Parbhoo emphasized that many of Africa’s most resilient founders are emerging from the recent funding downturn. Seye Bandele, CEO of PaidHR, praised Accion’s investment process, calling it inclusive and transparent, and credited the fund’s experience with guiding startups through common challenges.
By expanding its capital pool and maintaining a focus on fintech and financial inclusion, Accion aims to play a central role in the growth and recovery of Africa’s startup ecosystem.
