• Lagos-based Aruwa Capital has raised $35 million for its second gender-focused fund.
• The firm now aims to grow the fund to $50 million, with a possible cap of $60 million.
• Backers include Visa Foundation, Mastercard Foundation Africa Growth Fund, and Nigeria’s Bank of Industry.

Aruwa Capital Management, a gender-lens investment firm based in Lagos, plans to increase the target size of its second fund, Aruwa Capital Fund II, from $40 million to $50 million. The final close could go as high as $60 million before the end of 2025, the firm announced on Monday, April 28.

So far, Aruwa has secured $35 million, which is 90% of its original target. Most of the money came from both existing and new institutional and local investors. Notable contributors include the Visa Foundation, Mastercard Foundation Africa Growth Fund, Nigeria’s Bank of Industry, British International Investment (BII), and EDFI Management Company through ElectriFI.

Early investments already made

The fund will focus on fast-growing small businesses in Nigeria and Ghana, mainly in healthcare, fintech, clean energy, and essential consumer goods. It looks to back companies led by women or with mixed leadership teams that are ready to scale. Aruwa expects to invest between $1 million and $3 million per company.

Two deals have already been completed: one with Yikodeen, a safety boot manufacturer, and the other with a fast-food chain in Nigeria.

Aruwa Capital Fund II builds on the firm’s first fund, which closed in December 2022 with over $20 million. That fund was anchored by the Visa Foundation and included support from Mastercard Foundation Africa Growth Fund, Nyala Venture, and several family offices.

The companies backed in the first fund have since raised follow-on capital, achieving valuations roughly seven times higher than the initial investment.

“In the midst of the current challenging fundraising environment, we are excited to have raised 90% of our target fund size for Fund II,” said Adesuwa Okunbo Rhodes, founder of Aruwa Capital Management. “Our diverse pool of local and international LPs further reaffirms that our strategic market positioning resonates with a wide pool of investors, and we remain grateful to new and existing investors for their belief in our vision. We remain excited to continue to showcase the untapped potential of women in Africa.”

Founded in 2019, Aruwa Capital focuses on early-stage, women-led businesses in West Africa. The firm aims to close the financing gap while boosting local investment and promoting inclusive growth.