Aruwa Capital Secures USD 35 M To Scale Gender-Lens Investments In West Africa

Lagos-based Aruwa Capital Management has secured USD 35 M for its second fund, Aruwa Capital Fund II, reaching 90% of its initial USD 40 M target. Now eyeing a final close of USD 50 M with a hard cap at USD 60 M, the firm’s success reflects growing investor appetite for gender-smart, impact-driven private capital strategies in Africa despite a tough fundraising climate.

Returning investors like the Mastercard Foundation Africa Growth Fund and Visa Foundation were joined by new backers including Nigeria’s Bank of Industry (BOI), British International Investment (BII), and EDFI Management Company via its ElectriFI initiative. This marks a significant endorsement for Aruwa’s focus on high-growth SMEs in critical sectors like healthcare, financial services, energy access, and consumer goods, particularly those advancing women’s economic participation.

Led by Adesuwa Okunbo Rhodes, one of Africa’s few female fund managers, Aruwa’s first fund invested in 11 companies, including fintech unicorn FairMoney, healthcare platform Lifestores, and cold-chain logistics provider Koolboks. These businesses saw an average 22x revenue growth since investment and created over 200,000 direct and indirect jobs, with 73% of portfolio companies founded or led by women.

Aruwa’s disciplined, private equity-style diligence, targeting businesses with at least USD 500 K in annual revenue, sets it apart from typical venture capital models. Rhodes emphasised the importance of not just strong financials but also founder integrity and organisational culture as key factors in Fund II’s investment decisions.

The firm’s ability to attract both international and now significant local capital, with BOI’s entry as its first Nigerian LP, could be a catalyst for more local institutional participation in Africa’s private capital market. With final close expected later this year, Aruwa is poised to deepen its impact in Nigeria and Ghana, backing businesses that align financial returns with social inclusion.