The organisation recently released its inaugural impact report on their impact investing efforts since its inception in 2017, stating that they have supported over four million SMBs in 60 countries, contributing to partners whose work has helped unlock $2 billion to in local communities.

To learn more about the financial inclusion efforts made by the organisation, Finextra spoke to Najada Kumbuli, vice president and head of investments at Visa Foundation.

“What makes Visa Foundation unique is utilising the full spectrum of capital, both grants and impact investments, in order to holistically address all the issues that entrepreneurs - in particular women entrepreneurs - face as they launch and grow their businesses over time. Entrepreneurs need different types of skills as well as capital at different stages of growth.”

Kumbuli states that they have a holistic approach in supporting women entrepreneurs in training, networking, digital education, and capital allocation. She states that what is often missing is capital to drive forth women-owned businesses, and so Visa Foundation seeks to bridge that gap through grants and investments. She describes their approach as sector-agnostic, in focusing on supporting women and underserved entrepreneurs in a variety of sectors, many of which overlap with fintech.

Kumbuli points out that less than 2% of venture capital globally goes to women entrepreneurs.

She references a company that Visa Foundation has invested in called TLcom, a diverse African fund manager committed to investing in African businesses that solve socio-economic challenges and generate returns. Visa Foundation committed $7 million to help launch TLcom’s second fund in partnership with FirstCheck Africa, designed to support female-led pre-seed companies.

Cleva is a Nigeran fintech firm created to receive international payments, spend via debit card, make fee-free investments, and balance local currency shifts. TLcom and FirstCheck Africa engaged in Cleva’s pre-seed round and Cleva launched in Nigeria in August 2023 and has since processed over $4 million monthly.

Kumbuli highlights that addressing gender inequity through gender-diverse impact investing is essential to reforming the financial ecosystem.

“Visa Foundation has made it a priority from the very beginning to put gender equity at the centre of our strategy, not only because it's the right thing to do from an impact perspective, but also from a financial performance perspective across all asset classes,” says Kumbuli. “Whether it's in private equity or venture capital, research shows that women-led and gender-diverse fund managers are more likely to invest in women and diverse entrepreneurs and note that these investments have generated higher revenue than their counterparts.”

She states that through a wealth transfer happening globally, women are primed to become the majority of wealth holders. According to a survey conducted by RBC, 74% of women are interested in investing in ESG, which is twice as likely as men. Women-led funds can empower women to allocate more capital in a variety of industries.

"I believe this wealth transfer will lead to more women having an increased influence over decisions of where to invest and how to allocate capital. This presents investors with an opportunity to support women-led funds that are focused on generating both attractive financial returns and social and environmental impact. At Visa Foundation, we will continue to invest in women & diverse-led funds because our results show the positive ripple effects on individuals, families, and communities - ultimately advancing our goal of helping to build an inclusive future for all."