Aruwa Capital Management, a Lagos based female founded and led early-stage growth equity and gender lens fund manager, has raised 90% towards its $40m target for its second fund, Aruwa Capital Fund II. 

Adesuwa Okunbo Rhodes, Founder of Aruwa Capital Management, said: “In the midst of the current challenging fundraising environment, we are excited to have raised 90% of our target fund size for Fund II. This indicates our investors’ confidence and trust in our ability to execute on our proven investment strategy and double down on achievements recorded so far. Our diverse pool of local and international LPs further reaffirms that our strategic market positioning resonates with a wide pool of investors, and we remain grateful to new and existing investors for their trust and confidence. We remain excited to continue to showcase the untapped potential of women in Africa.”

Aruwa Capital is doubling down on its proven investment strategy, backing high-growth, impact-driven businesses that are transforming key industries in Nigeria and Ghana. 

This milestone surpasses the total fund size of Aruwa Capital Fund I which closed in 2022 at just over $20m. 

Fund II has attracted investment from returning LPs including the Mastercard Foundation Africa Growth Fund (MFAGF), Visa Foundation, global family offices and HNIs, and new LPs such as Bank of Industry (BOI), Nigeria’s oldest and largest Development Finance Institution (DFI), and international investors such as British International Investment (BII), the UK’s development finance institution and impact investor and EDFI Management Company, through its European Union funded Electrification Financing Initiative (ElectriFI).

Dr. Olasupo Olusi, Managing Director at Bank of Industry (BOI) said: “We are proud to be the first local institutional investor in Aruwa’s second fund. 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.”

Benson Adenuga, Coverage Director and Head of Nigeria Office at British International Investment (BII), said: “We are delighted to be the first international development finance institution supporting Aruwa for its efforts in catalysing the West African early-stage investing ecosystem. Aruwa is well positioned to bridge the early-stage funding gap, particularly for women entrepreneurs in Nigeria and Ghana. Their gender-lens investment approach aligns with BII’s commitment to fostering inclusive economic growth while mobilising more institutional capital.”

Rodrigo Madrazo, CEO of EDFI Management Company, added: “We are delighted to support Aruwa Capital in advancing renewable energy access solutions in Nigeria through Fund II. Thanks to catalytic funding from the European Union, this partnership reflects our shared commitment to accelerating the clean energy transition while fostering inclusive economic growth. Aruwa’s gender-lens investment approach ensures that women are prioritized in the green economy, and we are excited to collaborate in scaling innovative, climate-resilient businesses that create jobs and expand access to sustainable energy.”

With this encouraging progress, Aruwa is on track to upsize its targeted size from $40m to $50m (with a hard cap of $60m) within this year, on boarding more global institutional investors.
By focusing on essential sectors such as healthcare, energy access, financial services, and consumer staples like food and agribusiness, Aruwa is not just deploying capital but actively shaping Africa’s economic future through an intentional gender-lens investing approach.

With initial ticket sizes ranging from $1m to $3m, Fund II is already off to a strong start with two completed investments: Yikodeen, a pioneering indigenous manufacturer of safety boots, and a rapidly growing fast-casual dining restaurant chain in Nigeria, both positioned for improving economic opportunities for women and supporting inclusive growth.

The entrepreneurs supported by Fund I have amassed significant traction in recent years with total revenues across its portfolio of 11 companies growing on average 22x since investment (in local currency). 

Across both funds today, over 200,000 direct & indirect jobs are being supported and in line with our gender lens focus, 73% of companies backed under Fund I are founded or led by women.

In addition, Fund I’s portfolio companies have successfully raised substantial capital in follow-on rounds, attracting larger strategic and financial investors.

On average, these follow-on investments were made at valuations approximately 7x higher than Aruwa’s initial investment, underscoring Aruwa’s ability to identify high-potential businesses early whilst also showcasing the value add that Aruwa brings to its portfolio companies.

Dorothy Nyambi, President & CEO, MEDA (Fund Manager, The Mastercard Foundation Africa Growth Fund, said: “Aruwa Capital’s momentum is a powerful reminder of catalytic effect of what’s possible when we invest with intention and equity. At MEDA, we’re proud to be part of Fund I and now stand alongside Fund II as an anchor investor. Aruwa is creating employment opportunities at scale for Africa’s youth! Over 200,000 jobs impacted is just the beginning. Together, let us continue to shape the future job market that Africa’s youth not only need but deserve.”