Aruwa Capital Management, a Lagos-based private investment firm, has secured USD 35 million for its second fund, Aruwa Capital Fund II, bringing it within reach of its USD 40 million initial target. The fund, now eyeing a final close of USD 50 million with a hard cap at USD 60 million, signals rising investor confidence in gender-smart, impact-driven capital strategies despite broader fundraising headwinds. With this raise, Aruwa continues to solidify its position as a pioneering player in Africa’s gender-lens investment landscape.
Strong Support from Global and Local Investors
The successful raise saw participation from both returning and new investors, a testament to Aruwa’s growing credibility. Longtime backers such as the Mastercard Foundation Africa Growth Fund and the Visa Foundation were joined by new supporters, including Nigeria’s Bank of Industry (BOI), British International Investment (BII), and EDFI Management Company via its ElectriFI initiative. The inclusion of BOI also marks a milestone as Aruwa’s first local institutional limited partner, reflecting increasing domestic interest in private capital vehicles.
Anchored by a Vision for Inclusive Growth
Founded by Adesuwa Okunbo Rhodes, one of the few female fund managers on the continent, Aruwa Capital has carved out a unique strategy focused on investing in high-growth small and medium-sized enterprises (SMEs) that empower women. The firm takes a gender-lens approach by prioritising businesses either led or founded by women, as evidenced by the fact that 73% of its existing portfolio companies meet this criterion. With investments typically ranging from USD 1 million to USD 3 million, Aruwa targets companies in critical sectors such as healthcare, financial services, energy access, and consumer goods.
Proven Track Record from Fund I Performance
Aruwa’s first fund invested in 11 companies, including notable names such as fintech unicorn FairMoney, healthcare platform Lifestores, and cold-chain logistics startup Koolboks. These businesses achieved impressive results, recording average revenue growth of 22 times since investment and collectively generating more than 200,000 direct and indirect jobs. This robust track record underpins investor confidence in Aruwa’s disciplined and strategic investment model.
Differentiated Approach in a Crowded Market
Unlike traditional venture capital firms, Aruwa adopts a private equity-style diligence process, focusing on companies with a minimum of USD 500,000 in annual revenues. This rigorous approach places emphasis not only on strong financial fundamentals but also on founder integrity and organisational culture, which Rhodes highlights as key investment criteria. The firm’s selective model helps it partner with businesses poised for sustainable impact and financial returns.
Geographic Focus and Long-Term Commitment
While Fund II continues Aruwa’s commitment to West Africa, its geographic scope remains focused on Nigeria and Ghana—markets the firm views as rich in entrepreneurial talent and underserved by traditional capital sources. Aruwa maintains close operational relationships with its portfolio companies, providing ongoing strategic support to accelerate growth. This hands-on engagement reflects the firm’s long-term commitment to nurturing scalable and inclusive businesses.
With Fund II approaching its final close later this year, Aruwa Capital is well-positioned to deepen its impact across West Africa. The fund’s ability to mobilise both international and domestic institutional capital highlights growing belief in the potential of gender-lens investing to drive inclusive economic development. As Rhodes and her team double down on their mission, Aruwa stands out as a blueprint for how intentional, equity-focused investing can deliver transformative results.