Aruwa Capital Management, a female-led investment firm based in Lagos, has secured 90% of its $40 million target for its second investment fund, marking a significant leap toward empowering high-growth businesses in Nigeria and Ghana. The firm is now eyeing a fund upsize to $50 million, with a hard cap of $60 million by year-end.
This milestone surpasses the $20 million Aruwa raised for Fund I in 2022, underscoring the growing investor confidence in its unique model—a gender-lens investment strategy focused on essential sectors such as healthcare, energy access, financial services, food, and agribusiness.
“Aruwa is not just deploying capital; we are actively shaping Africa’s economic future,” the firm said in a statement.
Backed by Global and Local Heavyweights
Fund II has attracted a strong mix of returning and new Limited Partners (LPs), including:
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Mastercard Foundation Africa Growth Fund (MFAGF)
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Visa Foundation
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British International Investment (BII)
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Bank of Industry (BOI) – Nigeria’s largest Development Finance Institution
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EDFI Management Company through the EU’s ElectriFI initiative
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Global family offices and high-net-worth individuals
Adesuwa Okunbo Rhodes, Founder and Managing Partner at Aruwa Capital, described the achievement as a “vote of confidence” in the company’s strategy, especially in a challenging fundraising climate.
“Our diverse pool of local and international LPs validates our market approach and strengthens our commitment to showcase the untapped potential of women in Africa,” Rhodes stated.
Early Wins and Promising Portfolio
With initial investment sizes ranging from $1 million to $3 million, Fund II has already made two key investments:
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Yikodeen – a pioneering local manufacturer of safety boots
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A rapidly expanding fast-casual dining chain in Nigeria
Both businesses are geared toward creating economic opportunities for women and fostering inclusive job growth.
Aruwa’s Fund I performance has been exceptional, with companies in its portfolio growing revenue by an average of 22x (in local currency) since investment. To date, more than 200,000 direct and indirect jobs have been supported, and 73% of Fund I companies are women-founded or led.
Follow-on investments for Fund I companies have been made at valuations 7x higher than Aruwa’s original entry points, showcasing both the firm’s eye for potential and the value it adds to portfolio companies.
A Catalytic Force for Inclusive Growth
Industry leaders and LPs echoed their support for Aruwa’s impact-driven mission:
Dorothy Nyambi, CEO of MEDA, said:
“Aruwa is proof that investing with intention can transform Africa’s job market. Over 200,000 jobs impacted is only the beginning.”
Olasupo Olusi, MD at BOI, noted:
“Aruwa’s consistent track record in bridging SME funding gaps and attracting global capital is why we are proud to be their first local institutional investor.”
Rodrigo Madrazo, CEO of EDFI, added:
“Our partnership supports clean energy access while prioritizing women in Africa’s green economy.”
Benson Adenuga, Head of Nigeria Office at BII, stated:
“Aruwa’s focus on early-stage investing and women entrepreneurs aligns with our mission to foster inclusive economic development.”
Aruwa Capital’s momentum signals a broader shift toward inclusive, gender-focused investing in Africa—one that not only bridges funding gaps but also unlocks economic transformation across the continent.
