FUNDED BY WITH SUPPORT FROM IMPLEMENTED BY
Camilla Nestor Vikas Raj Beniamino Savonitto Hillary Miller-Wise CEO Managing Director Sector Economics and Founder and CEO MIX Accion Venture Lab Development Impact Tulaa IFC
Accion Venture Lab
Accion Venture Lab: Investing in fintech startups to drive financial inclusion ACCION VENTURE LAB STRATEGY Enable startup-led innovation to improve financial access and quality by investing in new models, products, and cutting edge technologies and by supporting them to scale Focus Approach Investment Track record We look for the most We provide equity We typically initially Over the last five years innovative models and capital , governance, and invest $400-500K in we’ve invested in 41 technologies delivering strategic support to seed- equity or quasi-equity companies in a variety quality financial services stage financial instruments across the of sectors such as SME to the underserved inclusion startups US, Latin America, Africa, lending, alternative credit around the world and Asia scoring, and insurtech We recently successfully closed a new fund which enables $33M to fuel our next phase Funding of growth, with support from a number of commercial and impact investors
Accion Venture Lab has invested in 41 fintech for inclusion companies globally to date Financial literacy Investment platform Refinancing for Digitizing field forces for Consumer videos and for SME Credit building and consumer debt and Lending to Peer-to-peer lending microfinance and other focused neo- behavioral credit marketplace lending financial advisory credit rebuilding MSME ‘industry for SMEs Mobile banking institutions bank, starting services scoring clusters’ for low-income with nanoloans migrant workers Digitized online savings clubs Business banking for Digitally enabled Digital self-employed workers lender for SMEs microinsurance sold alongside Specialized loans Big data for credit Alternative credit relevant products for affordable underwriting scoring for thin education Loan to help Health app connecting file customers consumers both build patients to doctors credit and save Consumer nano- loans through a Online lender for smartphone app MSMEs Partners with chit funds to lend to MSMEs Directed remittances Online working through gift cards capital finance for SMEs Payments via mobile airtime Affordable credit for Smartphone card- Agricultural healthcare Invoice discounting reader for broader insurance to finance for SME merchant acceptance smallholder farmers E-invoicing value chains in Africa and India and invoice Education savings plan Working capital discounting Online credit and for employees finance to SMEs solution for receivables in local SMEs marketplace for distribution value SMEs chains Online lender for Tech-enabled smallholder MSMEs Merchants mobile agriculture financing Alternative credit money acceptance Mobile app for scoring leveraging Financing for MSMEs Alternative credit & cash advance Neobank solution for Bundles consumer credit innovative data leveraging supply chain scoring based on micro-entrepreneurs insurance and and digital sources distribution networks mobile phone data fire-prevention payments
Fintech for inclusion innovation needs more support • The venture ecosystem is nascent and underdeveloped in many emerging markets • There is a lack of capital that exists for seed-stage fintech for inclusion startups globally today • Across sectors, less than 1% of impact investing capital goes to early-stage companies We continue to see innovative startups • "Most investors choose either to avoid [very early improving access, quality, and stage] companies altogether or to invest at a later stage when the execution risk is lower or when the affordability of financial services for risks are better understood" - Closing the Pioneer Gap underserved individuals and small • Many early-stage companies also require strategic businesses around the world support in addition to capital and few seed funds are equipped to provide this due to capability and budget constraints However there continues to be a clear • Venture Lab’s role as the first institutional investor in capital gap for early stage startups the companies we invest in is critical and catalytic, but more investment and support is needed Supporting companies at the seed stage is critical for innovation – it is where ideas are proven and disproven 18
One of the largest dedicated emerging market FinTech investors 12 years, 49 FinTech companies, $500MM+ invested CREDITAS (Brazil) KONFIO (Mexico) INVOINET (Argentina) LMRKTS (Global) IYZICO (Turkey) SUMSCOPE (China) MONI (Argentina) MINTIFI (India) MYUNIVERSE (India) BKASH (Bangladesh) WELAB (China) LULALEND (S.Africa) EARTHPORT (Global) EM BONDS (Global) DINEROMAIL (LatAm) COMPAREASIA (E.Asia) FIGO (Turkey) SAFETYPAY (LatAm) SAB SAS (Global) PAYNET (Vitenam) FINO (India) INTERSWITCH (Nigeria) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 WIZZIT (S.Africa) SUVIDHAA (India) FAWRY (Egypt) MOVIRED (Colombia) AFLUENTA (Argentina) BRANCH (Africa) YELLOWPEPPER (LatAm) F-ROAD (China) SCANNTECH (Uruguay) COMPARAONLINE (Chile) CONTABILIZEI (Brazil) VIAMERICAS (LatAm) KREDITECH (E.Europe) COVERFOX (India) GUIA BOLSO (Brazil) DEMICA (Global) NET 1 (S.Africa) E FACTOR (Mexico) NETWORK INTL (MENA) VOYAGER (Philippines) REMITLY (Global) HELLAS DIRECT (Greece) ZOONA (Zambia) KOIN (Brazil) RECARGA (Brazil) ROOJAI (Thailand) FIT (Turkey)
576 576 total applicants 400 400 eligible applicants 50 50 winners All iconography by Roussy Iucas
Funding for North America Average annual capital raised USD 899,000 inclusive fintech varies widely varies widely South Asia USD 626,000 from region-to- region. Sub-Saharan Africa USD 260,000
Capital is also concentrated within within regions.
Male-led Male-led Women-led Women-led Women-led Women-led fintechs raised 95% fintechs raised 95% of the amounts raised by their male counterparts – but not in all regions.
Fintechs that are ‘ networked ’ have 1.5X more fundraising success than others.
Tulaa: A Marketplace for Smallholder Farmers in Connecting Africa You to the Last Mile Overview Sept 2019 Winner, MIT Zambezi Winner, Facebook Prize for Innovation in Africa Innovation Finalist, Financial Inclusion, 2018 Challenge, 2017 Radicle Growth 2019 Winner Tulaa 2019 | Private & Confidential Challenge, 2019
Tulaa: Connecting farmers to markets through mobile technology Tulaa 2019 | Private & Confidential
50 million small farming households in Africa produce well below potential To meet rising food demand, these farmers will have to produce 70% more than they do today Limited access to Limited use of low affordable credit to quality inputs leads invest in the farm to low yields Need for cash Poor knowledge of during harvest and good practices leads lack of market to low productivity access result in low prices for produce Tulaa 2019 | Private & Confidential
The value of unmet demand for products and services among smallholder farmers in Africa is staggering Unmet demand for products and services among The unmet demand for credit among smallholders in Africa tops KES 160 trillion smallholder farmers in Kenya is about 1 bln 2 1.5 Total lending in Kenya (USD 39 bln) 1 0.5 Total lending for agriculture (USD 1.56 bln) 0 Financial Services Inputs Off-take Services Tulaa 2019 | Private & Confidential Sources: Dalberg (2014), FAO (2016), Tulaa analysis
At the same time, consumer demand for food in urban markets is exploding Smallholder farmers in SSA will have to increase yields by 70% to meet the demand $645 bln $167 bln Growth in consumer spending in SSA Growth in consumer spending on food and (2015-2025) beverages in SSA (2015-2025) Tulaa 2019 | Private & Confidential Source: McKinsey (Feb 2019)
Our Solution Tulaa is a marketplace that allows farmers to … Buy Inputs on Credit Learn How to Farm Better Sell Produce Farmers order inputs and apply for During the season, Tulaa sends farmers At harvest time, Tulaa takes orders from 1 2 3 credit to buy them. If approved, Tulaa tailored messages on good agricultural traders and fills them using a network of pays the nearest participating retailer practices. tech-enabled aggregators in the field. where the farmers then collect the goods. Tulaa 2019 | Private & Confidential
Farmer Journey 2. FULFILLMENT If approved, farmer 5. MARKETING receives e-voucher and Farmers sell produce to collects goods at retail Tulaa on day of harvest shop 1. REGISTRATION for a competitive price 4. TIPS Farmer places order for Farmer receives free inputs and applies for agronomic advice loan via agents during season via SMS 3. PAYMENT Farmer pays loan via M-PESA Tulaa 2019 | Private & Confidential
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