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FUNDED BY WITH SUPPORT FROM IMPLEMENTED BY

Camilla Nestor

CEO MIX

Vikas Raj

Managing Director Accion Venture Lab

Beniamino Savonitto

Sector Economics and Development Impact IFC

Hillary Miller-Wise

Founder and CEO Tulaa

Accion Venture Lab

Accion Venture Lab: Investing in fintech startups to drive financial inclusion

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 ACCION VENTURE LAB STRATEGY

Track record

Over the last five years we’ve invested in 41 companies in a variety

• f sectors such as SME

lending, alternative credit scoring, and insurtech

Approach

We provide equity capital, governance, and strategic support to seed- stage financial inclusion startups around the world

Focus

We look for the most innovative models and technologies delivering quality financial services to the underserved

Investment

We typically initially invest $400-500K in equity or quasi-equity instruments across the US, Latin America, Africa, and Asia We recently successfully closed a new fund which enables $33M to fuel our next phase

• f growth, with support from a number of commercial and impact investors

Funding

Accion Venture Lab has invested in 41 fintech for inclusion companies globally to date

Smartphone card- reader for broader merchant acceptance Big data for credit underwriting Specialized loans for affordable education Payments via mobile airtime Affordable credit for healthcare Merchants mobile money acceptance & cash advance Health app connecting patients to doctors Directed remittances through gift cards Digitized online savings clubs Online lender for MSMEs Financial literacy videos and behavioral credit scoring Investment platform for SME marketplace lending Refinancing for consumer debt and credit rebuilding Peer-to-peer lending for SMEs Invoice discounting finance for SME value chains Working capital finance to SMEs in local distribution value chains Alternative credit scoring based on mobile phone data Lending to MSME ‘industry clusters’ Digitizing field forces for microfinance and other institutions Credit building and financial advisory services Digitally enabled lender for SMEs Financing for MSMEs leveraging supply chain distribution networks Alternative credit scoring for thin file customers Online lender for MSMEs Tech-enabled smallholder agriculture financing Alternative credit scoring leveraging innovative data sources Online working capital finance for SMEs Loan to help consumers both build credit and save Mobile banking for low-income migrant workers Online credit and receivables marketplace for SMEs Neobank solution for micro-entrepreneurs Education savings plan for employees Agricultural insurance to smallholder farmers in Africa and India Consumer nano- loans through a smartphone app Partners with chit funds to lend to MSMEs Digital microinsurance sold alongside relevant products Bundles insurance and fire-prevention E-invoicing and invoice discounting solution for SMEs Consumer focused neo- bank, starting with nanoloans Business banking for self-employed workers Mobile app for consumer credit and digital payments

We continue to see innovative startups improving access, quality, and affordability of financial services for underserved individuals and small businesses around the world However there continues to be a clear capital gap for early stage startups

18

Supporting companies at the seed stage is critical for innovation – it is where ideas are proven and disproven

• 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

• "Most investors choose either to avoid [very early

stage] companies altogether or to invest at a later stage when the execution risk is lower or when the risks are better understood" - Closing the Pioneer Gap

• Many early-stage companies also require strategic

support in addition to capital and few seed funds are equipped to provide this due to capability and budget constraints

• Venture Lab’s role as the first institutional investor in

the companies we invest in is critical and catalytic, but more investment and support is needed

Fintech for inclusion innovation needs more support

2010 2011 2012 2013 2014 2015 2016 2017 2018 2007 2008 2009 2019

FINO (India) DINEROMAIL (LatAm) PAYNET (Vitenam) INTERSWITCH (Nigeria) BKASH (Bangladesh) EARTHPORT (Global) SAFETYPAY (LatAm) INVOINET (Argentina) IYZICO (Turkey) MYUNIVERSE (India) EM BONDS (Global) SAB SAS (Global) CREDITAS (Brazil) KONFIO (Mexico) LMRKTS (Global) MONI (Argentina) WELAB (China) COMPAREASIA (E.Asia) SUMSCOPE (China) MINTIFI (India) LULALEND (S.Africa) FIGO (Turkey)

One of the largest dedicated emerging market FinTech investors

12 years, 49 FinTech companies, $500MM+ invested

WIZZIT (S.Africa) SUVIDHAA (India) YELLOWPEPPER (LatAm) FAWRY (Egypt) F-ROAD (China) MOVIRED (Colombia) SCANNTECH (Uruguay) VIAMERICAS (LatAm) AFLUENTA (Argentina) COMPARAONLINE (Chile) KREDITECH (E.Europe) GUIA BOLSO (Brazil) NET 1 (S.Africa) NETWORK INTL (MENA) REMITLY (Global) ZOONA (Zambia) BRANCH (Africa) CONTABILIZEI (Brazil) COVERFOX (India) DEMICA (Global) E FACTOR (Mexico) VOYAGER (Philippines) HELLAS DIRECT (Greece) KOIN (Brazil) RECARGA (Brazil) ROOJAI (Thailand) FIT (Turkey)

total applicants eligible applicants winners

576 576 400 400 50 50

All iconography by Roussy Iucas

Funding for inclusive fintech varies widely varies widely from region-to- region.

USD 899,000 USD 260,000 USD 626,000 North America South Asia Sub-Saharan Africa Average annual capital raised

Capital is also concentrated within within regions.

Women-led Women-led fintechs raised 95% fintechs raised 95%

• f the amounts

raised by their male counterparts – but not in all regions.

Male-led Male-led Women-led Women-led

Fintechs that are ‘networked’ have more fundraising success than

• thers.

1.5X

Tulaa 2019 | Private & Confidential

Connecting You to the Last Mile

Tulaa: A Marketplace for Smallholder Farmers in Africa

Overview Sept 2019

Winner, MIT Zambezi Prize for Innovation in Financial Inclusion, 2018 Winner, Facebook Africa Innovation Challenge, 2017 Finalist, Radicle Growth Challenge, 2019

2019 Winner

Tulaa 2019 | Private & Confidential

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 use of low quality inputs leads to low yields Limited access to affordable credit to invest in the farm Need for cash during harvest and lack of market access result in low prices for produce Poor knowledge of good practices leads to low productivity

Tulaa 2019 | Private & Confidential

The value of unmet demand for products and services among smallholder farmers in Africa is staggering

0.5 1 1.5 2 Financial Services Inputs Off-take Services

Sources: Dalberg (2014), FAO (2016), Tulaa analysis

Total lending for agriculture (USD 1.56 bln) Total lending in Kenya (USD 39 bln)

The unmet demand for credit among smallholder farmers in Kenya is about 1 bln Unmet demand for products and services among smallholders in Africa tops KES 160 trillion

Tulaa 2019 | Private & Confidential

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

Growth in consumer spending in SSA (2015-2025)

$167 bln

Growth in consumer spending on food and beverages in SSA (2015-2025)

Source: McKinsey (Feb 2019)

Tulaa 2019 | Private & Confidential

Our Solution

Buy Inputs on Credit Learn How to Farm Better Sell Produce

1

Farmers order inputs and apply for credit to buy them. If approved, Tulaa pays the nearest participating retailer where the farmers then collect the goods.

2

During the season, Tulaa sends farmers tailored messages on good agricultural practices.

3

At harvest time, Tulaa takes orders from traders and fills them using a network of tech-enabled aggregators in the field.

Tulaa is a marketplace that allows farmers to…

Tulaa 2019 | Private & Confidential

• 4. TIPS

Farmer receives free agronomic advice during season via SMS

Farmer Journey

• 1. REGISTRATION

Farmer places order for inputs and applies for loan via agents

• 2. FULFILLMENT

If approved, farmer receives e-voucher and collects goods at retail shop

• 5. MARKETING

Farmers sell produce to Tulaa on day of harvest for a competitive price

• 3. PAYMENT

Farmer pays loan via M-PESA

Tulaa 2019 | Private & Confidential

Tulaa farmers taking inputs on credit and selling through Tulaa have a 143% higher net profit than farmers who don’t

• 2,000
• 1,000

1,000 2,000 3,000 4,000 5,000 1,572 955

Baseline

1,475

Segment 1

(Input loans only)

Segment 2

(Market linkage only)

2,328

Segment 3

(Input loans & Market linkage) Potato revenues Land rent Fertilizer costs Quality premium Labor costs Crop protection costs Planting material costs Finance costs Net income

Net income, per acre (USD)

USD/acre

The income of farmers who purchase inputs on credit and sell through Tulaa is ~150% higher than the Kenyan household median income of KES 193,554 (USD 1,870)

Tulaa 2019 | Private & Confidential

Our customers love our services

This planting season I took 3 bags

• f fertilizers as a loan and used

the little money I had to cater for children’s school fees. Currently I am repaying the loan fertilizer while my crops are at the flowering stage and my children are in school. Samuel Bor, 57, potato farmer Koige Ward, Nakuru County During previous planting seasons, I had to sell at least 3 goats to get enough money for inputs but after joining Tulaa I accessed a loan for fertilizers and hence able to save my remaining 2 goats hence giving me peace of mind. Christina Sang, 67, potato farmer Kamara Ward, Nakuru County My biggest headache as a young farmer is capital to acquire fertilizer and chemicals required in this line of business. Last year, I acquired fertilizer as a loan from

• Tulaa. I am amazed that the crops

are doing so well. Joseph, 26, tomato farmer Olorropil Ward, Narok County Due to limited finances, I used to skip some important crop stages. Right now I am strategic in my approach. I am not missing any of the stages as I can access fertilizers and chemicals any time at any agro-vet near me through Tulaa. Martha Makau, 57, tomato farmer Ikaalasa Ward, Machakos County

Q&A

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