Nigerian Investment Firm Aruwa Capital Management Raises $35M to Back Businesses in Africa

News World

Published by Stephen Oluwadara at April 30, 2025

Aruwa Capital: A Gender Focused Investment Firm

Founded in 2019, Adesuwa Okunbo Rhodes, Aruwa Capital is one of Africa’s female investor-led firms, specialising in gender-lens investing. Its investment thesis centres on high-growth small and medium-sized enterprises (SMEs) in healthcare, energy access, financial services, and consumer goods.

The Nigerian-based firm prioritizes female-founded or female-led businesses or businesses that produce goods and services that benefit women. It also made key investments in tech-enabled businesses, including FairMoney and OmniRetail.

According to the founder, Aruwa Capital Management will continue to focus on small and medium-sized businesses, with a geographic focus on Nigeria and Ghana. The firm is committed to maintaining close relationships with its portfolio companies, ensuring continued growth and development.

The firm raised 90% of its $40 million target for its second fund, Aruwa Capital Fund II. With this encouraging progress, Aruwa is on track to increase its target for Fund II from $40 million to $50 million (with a hard cap of US$60 million) within this year, onboarding more global institutional investors.

“In the midst of the current challenging fundraising environment, we are excited to have raised 90% of our target fund size for Fund II and to be upsizing its size due to strong interest from investors,” said Aruwa Capital Management Adesuwa Okunbo Rhodes in a press release seen by UrbanGeekz. “This indicates investors’ confidence and trust in our ability to execute on our proven investment strategy and double down on achievements recorded so far.”

Fundraising for Fund II began in November 2023, and by July 2024, commitments for the first $20 million had already been secured, despite a challenging funding environment.

With initial ticket sizes ranging from $1 million to $3 million, Fund II is already off to a strong start with two (2) completed investments: Yikodeen, a pioneering indigenous manufacturer of safety boots, and Toasties, a rapidly growing fast-casual dining restaurant chain in Nigeria. Both are positioned to improve economic opportunities for women and support inclusive growth.

Aruwa Capital’s Impressive Lineup of Investors

Fund II has attracted investment from returning Limited Partners (LPs), including the Mastercard Foundation Africa Growth Fund (MFAGF) and Visa Foundation, global family offices, and High-Net-Worth Individuals (HNIs). New LPs, such as the Bank of Industry (BOI), Nigeria’s oldest and largest Development Finance Institution (DFI), have joined the investment roster.

International investors like British International Investment (BII) and EDFI Management Company have invested in Fund II through their European Union-funded Electrification Financing Initiative (ElectriFI).

While African funds are increasingly being launched to support local SMEs and startups, many still rely on foreign capital. However, with the Bank of Industry now on board as an LP, Rhodes notes that local firms must work to convince local capital allocators of the viability of the venture capital and private equity asset class.

“Many local institutions still need a lot of education around the private equity asset class. They’re used to investing in government bonds and treasury bills, so you really need to convince them to invest in riskier alternative assets. To do that, you need to showcase a strong track record,” Rhodes added.

The Bank of Industry (BOI) is one of the key new investors in Fund II. Dr. Olasupo Olusi, BOI’s Managing Director, expresses pride in being the first local institutional investor.

“Aruwa has consistently demonstrated a strong track record in bridging SME funding gaps and catalyzing both local and international capital. We look forward to a productive partnership with their team and portfolio companies.”

Main Image: Adesuwa Okuno-Rhodes, Managing Partner and Founder, Aruwa Capital Management. Image Credit: Techpoint Africa