Alitheia Capital and Goodwell Investments have officially announced the successful exit of their joint investment in the uMunthu Fund, marking a significant milestone with the divestment from Baobab Nigeria. Baobab Nigeria is a financial institution dedicated to providing essential banking services to individuals and micro, small, and medium-sized enterprises (MSMEs) in underserved regions of the country.
This exit comes more than 12 years after Alitheia and Goodwell first invested in Baobab Nigeria, initially through their GWAMDC fund and subsequently via the uMunthu Fund. Over the years, Baobab Nigeria has experienced remarkable growth, expanding its operations from a single location in Kaduna state to a robust presence across 16 states in Nigeria. The institution has significantly increased its customer base, growing from serving just 19,000 clients through a modest network of five branches to now reaching 230,000 customers via a national network of 38 branches.
The exit signifies a transformative phase for Baobab Nigeria, as the uMunthu Fund transitions its responsibilities to the holding company, which is now fully owned by the international Baobab Group. The Nigerian team is committed to continuing its mission of providing vital financial services to underserved populations, ensuring that access to banking remains a priority.
Tokunboh Ishmael, managing partner at Alitheia, reflected on the journey of Baobab Nigeria, stating;
When we first invested, this was a bank operating out of a single room in northern Nigeria. Today, it stands as one of the top three nationally licensed microfinance banks in the country. We have navigated a path of leadership, governance, and impactful financial growth, scaling from humble beginnings to becoming a leading national microfinance institution. We take great pride in what has been accomplished together and eagerly anticipate the future trajectory of Baobab Nigeria.
This successful exit not only highlights the growth and potential of Baobab Nigeria but also underscores the commitment of Alitheia Capital and Goodwell Investments to fostering sustainable financial institutions that serve the needs of underserved communities. As Baobab Nigeria embarks on this new chapter, it aims to continue its legacy of financial inclusion and empowerment across Nigeria.
