Aruwa Capital Management, a female-founded and led investment firm based in Lagos, has announced it has raised 90% of its $40 million target for its second fund—Aruwa Capital Fund II—as investor appetite grows for gender-lens and impact-focused investing in Africa. The early-stage growth equity fund manager is doubling down on its strategy to back transformative, high-growth businesses in Nigeria and Ghana, particularly in essential sectors like healthcare, energy access, financial services, food, and agribusiness.
This milestone already surpasses the $20 million final close of Aruwa’s first fund in 2022. Encouraged by strong investor demand, Aruwa Capital now plans to increase the target for Fund II to $50 million, with a hard cap of $60 million, within the year.
The fund has attracted a blend of returning and new limited partners (LPs), reflecting increasing global and local interest in early-stage investing in Africa. Returning backers include the Mastercard Foundation Africa Growth Fund (MFAGF) and Visa Foundation, while new LPs feature the Bank of Industry (BOI)—Nigeria’s largest development finance institution—and international players such as British International Investment (BII) and EDFI Management Company, supported by the European Union’s Electrification Financing Initiative (ElectriFI).
Aruwa Capital Fund II has already made two investments: one in Yikodeen, an indigenous manufacturer of safety boots, and another in a fast-growing casual dining restaurant chain in Nigeria. Both companies align with Aruwa’s mission to promote inclusive growth and improve economic opportunities for women.
Fund I’s track record has been impressive. Its portfolio of 11 companies has achieved average revenue growth of 22x since investment (in local currency), and 73% of its investees are women-founded or led. The fund has supported the creation of over 200,000 direct and indirect jobs, with several portfolio companies raising follow-on capital at valuations up to 7x higher than Aruwa’s entry points.
Investor confidence in Aruwa stems not only from its results but also from its pioneering gender-lens approach. “We’re proud to be part of Aruwa Fund I and now Fund II as an anchor investor,” said Dorothy Nyambi, CEO of MEDA, the MFAGF fund manager. “Over 200,000 jobs impacted is just the beginning.”
Dr. Olasupo Olusi, Managing Director of BOI, added, “Aruwa has demonstrated a strong track record in bridging SME funding gaps and catalyzing capital—both local and international.”
Rodrigo Madrazo, CEO of EDFI Management Company, praised Aruwa’s focus on renewable energy access, saying the partnership is “advancing climate-resilient businesses while prioritizing women in the green economy.”
Benson Adenuga of BII highlighted Aruwa’s role in bridging the early-stage funding gap, especially for women entrepreneurs, and emphasized alignment with BII’s broader commitment to inclusive economic growth.
Adesuwa Okunbo Rhodes, Founder and Managing Partner of Aruwa Capital, noted, “In this challenging fundraising environment, the strong investor response affirms our market positioning and belief in the untapped potential of women in Africa.”
With momentum on its side and strong investor backing, Aruwa Capital is poised to make an even greater impact across West Africa’s investment landscape.
