Mexico: Accion Venture Lab Exits Clip

Feb 2017
Mexico, February, 14 2017 - Accion Venture Lab, the seed-stage investment initiative of financial inclusion leader Accion, announced today that it has marked its second successful exit, further demonstrating the potential for early stage investments to generate social and financial returns.

Venture Lab has sold its stake in Clip, a Palo Alto and Mexico City-based company that provides cost-effective and efficient digital payment solutions to the often financially underserved segment of micro, small, and medium enterprises (MSMEs) in Mexico.

Clip combines a card reader plug-in for smartphones with an innovative back-end risk management platform to enable nearly any merchant in Mexico to accept all types of debit and credit cards. In doing so, it provides a pathway for small businesses to transition from cash-based systems to more efficient digital approaches that enable transactions that were previously too costly to be viable.

Venture Lab co-led the first institutional investment round in Clip in February 2013. As of December 2016, with Venture Lab’s active support, Clip has become one of Mexico’s largest digital payment solutions providers for MSMEs.

“After reviewing thousands of start-ups and working with the dozens of innovators in the Venture Lab portfolio, we’ve seen how creative and responsive fintech leaders like Clip can be in responding to the business challenges of the world’s underserved small businesses,” said Venture Lab Managing Director Vikas Raj. “We are honored to have been a part of Clip’s success in providing a pathway for small businesses to transition from cash-based systems to digital payment solutions that lower costs and enable them to serve more customers.”

“Accion Venture Lab was the first investor that trusted us with this crazy idea of bringing card-acquiring services to small businesses on every single corner in Mexico. Thanks to their initial support we are on our way to fulfilling our vision. It was a pleasure working with the Accion team,” said Adolfo Babatz, CEO and Co-Founder of Clip.

“Accion advances financial inclusion by investing in sustainable, scalable, well-managed companies that generate both social and economic returns,” said Accion President and CEO Michael Schlein. “Venture Lab’s second successful exit demonstrates the viability of achieving both profit and purpose by investing in early stage start-ups that promote high-quality financial services for underserved customers.”

Source : PE Hub Network

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