Aruwa Capital Management, the trailblazing, female-founded investment firm based in Lagos, has announced it has raised 90% of its $40 million target for its second fund, Aruwa Capital Fund II—a major milestone in a tough fundraising environment.
Building on the success of its first fund, which closed in 2022 at just over $20 million, Fund II is already showing promise. Backed by a diverse group of returning and new investors, including the Mastercard Foundation Africa Growth Fund, Visa Foundation, Bank of Industry (BOI), British International Investment (BII), and EDFI Management Company (via the EU-funded ElectriFI initiative), Aruwa is on track to exceed its initial $40 million goal and could hit a hard cap of $60 million within the year.
Founded and led by Adesuwa Okunbo Rhodes, Aruwa Capital focuses on high-growth, impact-driven businesses in sectors that touch the daily lives of millions—healthcare, energy access, financial services, and consumer goods like food and agribusiness.
“Our investors’ continued belief in our vision speaks volumes,” said Okunbo Rhodes. “This raise shows that our proven model—backing inclusive, impact-led businesses led by or serving women—is gaining traction with both local and international capital providers.”
Fund II is already deploying capital, with two notable investments: Yikodeen, a Nigerian manufacturer of industrial safety boots, and a fast-growing restaurant chain aimed at expanding access to affordable, quality meals. Both companies are aligned with Aruwa’s broader mission to support inclusive job creation and economic opportunity—especially for women.
The numbers from Aruwa’s first fund tell a compelling story: portfolio companies saw revenues grow 22x on average (in local currency), while 73% of the businesses were founded or led by women. Follow-on funding for these companies has often come in at valuations seven times higher than Aruwa’s original investment, proving the firm’s ability to spot and support early-stage winners.
Institutional backers are taking notice.
“Aruwa is creating employment opportunities at scale for Africa’s youth,” said Dorothy Nyambi, President and CEO of MEDA, fund manager of the Mastercard Foundation Africa Growth Fund. “Over 200,000 jobs impacted is just the beginning.”
Benson Adenuga, Head of BII’s Nigeria office, emphasized Aruwa’s role in unlocking capital for underrepresented founders: “Aruwa is well-positioned to bridge the early-stage funding gap, particularly for women entrepreneurs in Nigeria and Ghana.”
Dr. Olasupo Olusi of BOI echoed the sentiment, calling Aruwa “a strong partner in catalyzing both local and international capital for SMEs.”
With its second fund nearing close, Aruwa is sending a clear message: impact investing, when led with purpose and inclusion, is not only possible—it’s profitable, sustainable, and necessary for Africa’s future.
