Aruwa Capital Management, a Lagos-based, female-founded and led early-stage growth equity and gender lens investor, has secured 90% of the $40m target for its second fund, Aruwa Capital Fund II, already exceeding the $20m raised for its inaugural fund, which closed in 2022.
Fund II has attracted commitments from a mix of returning limited partners, including the Mastercard Foundation Africa Growth Fund (MFAGF) and Visa Foundation, alongside global family offices, high-net-worth individuals, and new investors such as Nigeria’s Bank of Industry (BOI), British International Investment (BII), and EDFI Management Company via its EU-backed Electrification Financing Initiative (ElectriFI).
Buoyed by strong investor demand, Aruwa is now set to increase the target size for Fund II to $50m, with a hard cap of $60m, and aims to complete fundraising within the year.
Aruwa Capital backs high-growth, impact-driven companies across Nigeria and Ghana, with a focus on sectors such as healthcare, energy access, financial services, and consumer staples. Through its gender lens investing strategy, the firm aims to drive both financial returns and inclusive economic development.
With initial cheque sizes ranging from $1m to $3m, Fund II has already completed two investments: Yikodeen, an indigenous safety boot manufacturer, and a fast-growing fast-casual dining chain in Nigeria, both contributing to economic empowerment and job creation for women.
Fund I’s portfolio companies have demonstrated significant growth, with average revenue expansion of 22x (in local currency terms) and 73% of investees being female-founded or female-led. Across both funds, Aruwa has supported over 200,000 direct and indirect jobs to date.
Portfolio companies from Fund I have also attracted strong follow-on funding, with valuations rising on average by a multiple of 7x post-Aruwa’s initial investment.
