Aruwa Capital Management, a female-founded and led early-stage growth equity firm, has raised $35 million for its second fund, Aruwa Capital Fund II, surpassing its initial target of $40 million.
The fund is now on track to increase its target to $50 million, with a hard cap of $60 million.
This achievement marks a significant milestone for Aruwa Capital, surpassing the size of its first fund, which closed at just over $20 million in 2022. Aruwa’s approach continues to focus on high-growth, impact-driven businesses across essential sectors such as healthcare, energy access, financial services, and food and agribusiness in Nigeria and Ghana.
Strong Investor Backing
Fund II has garnered support from both returning and new investors, including the Mastercard Foundation Africa Growth Fund (MFAGF), Visa Foundation, Bank of Industry (BOI), British International Investment (BII), and EDFI Management Company, through its Electrification Financing Initiative (ElectriFI) funded by the European Union.
Focus on Gender-Lens Investing
Aruwa Capital maintains its gender-lens investing strategy, with a special emphasis on supporting women-led businesses. The firm has already made two investments, including Yikodeen, a Nigerian manufacturer of safety boots, and a growing fast-casual dining chain in Nigeria. These businesses are expected to generate economic opportunities for women and drive inclusive growth in the region.
Strong Performance of Fund I
Aruwa’s first fund, Fund I, has seen substantial growth, with portfolio companies growing their total revenues by an average of 22 times since investment. Across both funds, Aruwa has supported over 200,000 direct and indirect jobs, demonstrating its continued impact on local economies.
Additionally, companies backed by Fund I have successfully raised significant follow-on capital, with valuations increasing on average by seven times, validating the firm’s early-stage investment strategy.
Aruwa Capital’s second fund is expected to continue its focus on backing high-potential, gender-inclusive businesses, helping to shape Africa’s economic future.
- Aruwa Capital Raises $35M for Fund II - 04/28/2025
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