Aruwa Capital Management, a female-founded private equity firm based in Lagos, has successfully raised $35 million in the second close of its gender-focused fund, Aruwa Capital Fund II. The fund aims to bridge the early-stage financing gap for women-led and gender-diverse businesses in Nigeria and Ghana.
The latest funding round attracted investments from prominent institutions, including British International Investment (BII), which contributed $5 million, Mastercard Foundation Africa Growth Fund, Visa Foundation, and EDFI Management Company through the EU’s Electrification Financing Initiative. Notably, Nigeria’s Bank of Industry became the fund’s first local institutional investor.
With this raise, Aruwa Capital Fund II has reached 90% of its $40 million target, surpassing the $20 million final close of its inaugural fund in 2022. The firm is considering increasing the target to $50 million, with a hard cap of $60 million later this year.
Aruwa Capital Management was founded in 2019 by Adesuwa Okunbo Rhodes, who leveraged over a decade of investment banking and private equity experience from leading global organizations such as J.P. Morgan. She established Aruwa to address the investment gap that women-led enterprises face in Africa.
The fund focuses on sectors essential for inclusive economic development, including healthcare, energy access, financial services, and consumer goods. It targets investments ranging from $500,000 to $2.5 million in women-focused small and growing businesses.
Aruwa Capital Fund II has already made two investments: Yikodeen, a local manufacturer of industrial safety boots, and Toasties, a fast-growing casual dining chain.
The firm’s inaugural fund demonstrated significant impact, with portfolio companies achieving average revenue growth of 22 times in local currency and securing follow-on investments at valuations approximately seven times higher than Aruwa’s original entry. Across both funds, more than 200,000 direct and indirect jobs have been supported, with 73% of the companies either founded or led by women.
In recognition of its efforts, Aruwa Capital was named the “Impact Investor of the Year 2023” and received the 2023 2X Global Woman Manager of the Year award. As Aruwa Capital continues to drive gender-lens investing in West Africa, the firm remains committed to fostering inclusive economic growth and empowering women entrepreneurs across the continent.
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