Aruwa Capital Raises $35m, Hits 90% of Fund Target at Second Close

Aruwa Capital Management, a Nigerian investment firm, has raised $35 million towards its $40 million target for its second fund. The firm is set to reach its final close of $50 million, with a hard cap of $60 million within the year. The total fund exceeds Aruawa Capital’s first fund, which closed in 2022 at just over $20 million.

The second fund includes new and returning investors such as the Mastercard Foundation Africa Growth Fund (MFAGF), Visa Foundation, global family offices and HNIs, and new LPs such as the Bank of Industry (BOI), Nigeria’s oldest and largest Development Finance Institution (DFI).

“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,” Adesuwa Okunbo Rhodes, Founder of Aruwa Capital Management, said in a press release.

Aruwa Capital backing female entrepreneurs

Fund II is already making an impact with two completed investments: Yikodeen, an Indigenous manufacturer of safety boots, and a rapidly growing fast-casual dining restaurant chain in Nigeria. Both companies are expected to improve economic opportunities for women and support inclusive growth.

More than 200,000 direct and indirect jobs are being supported across both funds. This aligns with Aruwa’s gender lens focus, as 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.

“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,” Rodrigo Madrazo, CEO of EDFI Management Company, adds.

The founder of Aruwa Capital

Adesuwa Okunbo Rhodes is the managing partner and founder of Aruwa Capital Management and is one of a handful of women leading VC firms in Africa. Beyond being able to invest in an underrepresented market, existing data suggests that gender diversity improves companies’ profitability, and Rhodes was keen to exploit this.

“I’ve been in the industry for 14 years. I was running a fund prior to launching Aruwa, and when I was fundraising for that fund, I looked around and saw that there were no women running or owning their own funds. Back then, there were less than ten funds that were owned and run by a woman, and this is a continent of 1.3 billion people,” she told Techpoint.

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