Aruwa Capital Management, the Lagos-based investment firm founded and led by women, has impressively secured 90% of its $40 million target for its second fund, Aruwa Capital Fund II. The firm is maintaining its focus on supporting high-growth, impact-oriented enterprises that are reshaping vital sectors in Nigeria and Ghana.
This achievement already exceeds the size of Aruwa’s first fund, which closed in 2022 with just over $20 million. Fund II has attracted renewed backing from previous investors such as the Mastercard Foundation Africa Growth Fund and the Visa Foundation, alongside new commitments from Nigeria’s Bank of Industry (BOI), British International Investment (BII), and EDFI Management Company through the EU-funded Electrification Financing Initiative (ElectriFI).
With momentum building, Aruwa Capital is planning to increase the fund’s target from $40 million to $50 million, with a maximum cap of $60 million anticipated before the year’s end. This expansion is expected to bring more global institutional investors on board.
The fund concentrates on sectors critical to economic development, including healthcare, energy access, financial services, and consumer staples like food and agribusiness. Aruwa’s gender-lens investment approach ensures that women-led or women-founded companies receive priority, reflecting the firm’s commitment to inclusive growth.
Fund II has already made two investments: Yikodeen, a homegrown manufacturer of safety boots, and a fast-growing fast-casual dining chain in Nigeria. These ventures are poised to enhance economic opportunities for women and drive inclusive progress.
The first fund’s portfolio companies have demonstrated remarkable growth, with revenues increasing on average 22 times since investment, and collectively supporting over 200,000 direct and indirect jobs. Notably, 73% of these companies are led or founded by women. Many have also attracted significant follow-on funding at valuations approximately seven times higher than Aruwa’s initial stakes, highlighting the firm’s ability to identify promising businesses early and add substantial value.
Commenting on the progress, Dorothy Nyambi, President & CEO of MEDA, which manages the Mastercard Foundation Africa Growth Fund, stated: “Aruwa Capital’s momentum is a powerful reminder of the catalytic effect of what’s possible when we invest with intention and equity. At MEDA, we’re proud to be part of Fund I and now stand alongside Fund II as an anchor investor. Aruwa is creating employment opportunities at scale for Africa’s youth! Over 200,000 jobs impacted is just the beginning. Together, let us continue to shape the future job market that Africa’s youth not only need but deserve.”
Dr. Olasupo Olusi, Managing Director at BOI, added: “We are proud to be the first local institutional investor in Aruwa’s second fund. Aruwa has consistently demonstrated a strong track record in bridging SME funding gaps and catalysing both local and international capital. We look forward to a productive partnership with their team and portfolio companies.”
Rodrigo Madrazo, CEO of EDFI Management Company, remarked: “We are delighted to support Aruwa Capital in advancing renewable energy access solutions in Nigeria through Fund II. Thanks to catalytic funding from the European Union, this partnership reflects our shared commitment to accelerating the clean energy transition while fostering inclusive economic growth. Aruwa’s gender-lens investment approach ensures that women are prioritised in the green economy, and we are excited to collaborate in scaling innovative, climate-resilient businesses that create jobs and expand access to sustainable energy.”
Benson Adenuga, Coverage Director and Head of Nigeria Office at BII, said: “We are delighted to be the first international development finance institution supporting Aruwa for its efforts in catalysing the West African early-stage investing ecosystem. Aruwa is well positioned to bridge the early-stage funding gap, particularly for women entrepreneurs in Nigeria and Ghana. Their gender-lens investment approach aligns with BII’s commitment to fostering inclusive economic growth while mobilising more institutional capital.”
Founder Adesuwa Okunbo Rhodes expressed optimism despite the fundraising challenges: “In the midst of the current challenging fundraising environment, we are excited to have raised 90% of our target fund size for Fund II. This indicates our investors’ confidence and trust in our ability to execute on our proven investment strategy and double down on achievements recorded so far. Our diverse pool of local and international LPs further reaffirms that our strategic market positioning resonates with a wide pool of investors, and we remain grateful to new and existing investors for their trust and confidence. We remain excited to continue to showcase the untapped potential of women in Africa.”
Aruwa Capital’s continued success highlights its role in not only providing capital but actively shaping the economic landscape of West Africa through a gender-conscious lens.
