At second close, Lagos-based VC firm Aruwa raised $35 M, reached 90% of its Fund II

Aruwa Capital Management, an early-stage growth equity and gender lens fund manager founded by women in Lagos, has raised 90% of the US $40 million it set out to raise for its second fund, Aruwa Capital Fund II.

One of the few women-owned and run growth equity funds on the African continent, Aruwa Capital Management makes investments in unexplored markets that other funds are currently ignoring, as well as in necessities for the continent’s next billion residents.

The purpose of the intentional gender lens fund is to provide equity to well-established and rapidly expanding small to lower mid-market businesses in Ghana and Nigeria that are presently underserved and undervalued by bigger financial institutions.

Its first fund, which closed at just over US$20 million in 2022, has more than doubled that amount with the second close of Fund II. This has drawn investment from new LPs like Bank of Industry (BOI), Nigeria’s largest and oldest Development Finance Institution (DFI), as well as from international investors like British International Investment (BII), the UK’s development finance institution and impact investor, and EDFI Management Company, through its Electrification Financing Initiative (ElectriFI), which is funded by the European Union.

Aruwa is on track to onboard more international institutional investors this year by increasing its targeted size from US$40 million to US$50 million (with a hard cap of US$60 million) thanks to this encouraging progress.

Aruwa is concentrating on vital industries like healthcare, energy access, financial services, and consumer goods like food and agriculture. The initial ticket prices range from $1 million to $3 million. Two of Fund II’s investments have already been completed: Yikodeen, a fast-casual dining restaurant chain in Nigeria that is expanding quickly and is a pioneering indigenous manufacturer of safety boots. Both businesses are positioned to enhance women’s economic opportunities and promote inclusive growth.