Aruwa Capital Raises $35M for Gender-Lens Fund II, Eyes Expansion in Nigeria and Ghana
Aruwa Capital Management, one of Africa’s leading female-led private equity firms, has announced the successful close of $35 million for its second fund, Aruwa Capital Fund II, edging closer to its $50 million target. The fund, which has a hard cap of $60 million, is a strategic vehicle designed to back early-stage, high-growth businesses that are either female-founded, female-led, or deliver products and services that improve the lives of women.
Founded in 2019 by Adesuwa Okunbo Rhodes, Aruwa Capital is headquartered in Lagos, Nigeria, and is a trailblazer in gender-lens investing, a rising strategy that blends commercial return with social impact, particularly around women’s economic inclusion. With over $20 million in assets under management before Fund II, the firm is gaining traction among local and international institutional investors.
Strong Investor Confidence Backs Gender-Lens Strategy
The $35 million secured reflects growing investor confidence in Aruwa’s gender-lens model. Key returning investors include the Mastercard Foundation Africa Growth Fund and the Visa Foundation. New investors include:
- Bank of Industry (Nigeria’s state-owned development finance institution),
- British International Investment (BII), and
- EDFI Management Company through its ElectriFI initiative.
BII’s investment aligns with its broader $300 million commitment to women-led funds globally, underscoring the fund’s alignment with global efforts to close the gender financing gap.
A Proven Track Record of Impact and Returns
Aruwa’s first fund, which closed in 2022 at $20 million, delivered notable results despite macroeconomic headwinds. According to the firm, its 11 portfolio companies recorded:
- Revenue growth of 22x (in local currency),
- Follow-on investments at 7x Aruwa’s original entry valuations.
These results not only validate the firm’s investment thesis but also demonstrate that socially conscious investing can drive significant financial returns.
Sector Focus: High-Growth, High-Impact Industries
Fund II will target companies operating across:
- Healthcare
- Financial services
- Energy access
- Consumer goods
These sectors are central to improving the quality of life and expanding access for underserved communities, particularly women. Aruwa’s strategy is also aligned with broader regional priorities such as the African Continental Free Trade Area (AfCFTA), which emphasises economic empowerment, job creation, and inclusive trade.
Addressing the Gender Capital Gap in Africa
In 2023, female-led startups in Africa raised just over $200 million, while male-led startups raised $2.7 billion; a 13x disparity, according to data from The Africa Big Deal. Aruwa Capital is one of the few African firms actively working to change that narrative by channelling capital to women-centric businesses.
With the final close of Fund II expected later this year, Aruwa is positioning itself as a long-term partner for gender-inclusive enterprises across Nigeria and Ghana.
A New Chapter in African Private Equity
The success of Aruwa Capital Fund II signals a shift in how institutional investors view gender-focused investing—not as charity or CSR, but as a strategic growth opportunity. As more capital flows into women-led initiatives, Aruwa is helping shape a more equitable and prosperous future for Africa.
“Our model proves that investing in women is not just the right thing to do; it’s the smart thing to do,” said Adesuwa Okunbo Rhodes, Founder & Managing Partner at Aruwa Capital.
As Aruwa Capital advances toward its $50 million goal, it reaffirms its leadership in a growing movement of African firms marrying profitability with purpose.
