New Delhi, April 28 -- Aruwa Capital Management, an early-stage private equity firm investing in growth-oriented small and mid-sized businesses in Nigeria and Ghana, has marked the second close of its second investment vehicle, securing about 90% of its initial fundraising target. The firm is aiming for a 25% oversubscription amid strong investor interest. Headquartered in Lagos, Aruwa currently manages assets worth $40 million. For the second close of Aruwa Fund II, the firm raised $35 million, with support from both existing and new limited partners. The $40-million target fund attracted continued backing from the Mastercard Foundation Africa Growth Fund and the Visa Foundation. Additional LPs in Fund II include British International Investment (BII), EDFI Management Company, and Nigeria's DFI Bank of Industry Ltd (BOI). Founded by Adesuwa Okunbo Rhodes in 2019, Aruwa focuses on high-impact and defensible sectors such as healthcare, financial inclusion, renewable energy (via clean technologies), and essential fast-moving consumer goods. Launched in 2023, Fund II is double the size of the firm's debut vehicle-Aruwa Fund I-which marked a final close at $20 million in December 2022. "We've almost doubled the size of Fund I, and we're on track to upsize Fund II to $50 million this year due to strong investor interest," Aruwa said in a statement. So far, Aruwa has made two deployments from Fund II: safety boots manufacturer Yikodeen Nigeria and casual dining restaurant chain Toasties. Earlier this year, it acquired a 25% stake in Yikodeen Nigeria. Aruwa mainly focuses on companies that have an annual turnover of at least $300,000 and $500,000 and provide essential goods and services that cater to women. It invests in ticket sizes between $500,000 and $2.5 million and backs companies that are founded or co-founded by women or have women in the workforce, senior management team, or value chains. Aruwa manages a portfolio of 13 companies, including health-tech company Lifestores Healthcare, fintech platform Pngme, consumer goods company Taeillo, and technology-enabled renewable energy refrigeration Koolboks. Its recent deals include additional investment in existing portfolio company AgroEknor, a hibiscus flower exporter and wellness brand. Key limited partners in Aruwa's debut fund included the Visa Foundation, Mastercard Foundation Africa, Growth Fund, Nyala Venture, and leading family businesses from Africa, Europe, and the US. Aruwa's current portfolio mix is led by the consumer goods sector (46%), followed by healthcare (31%), fintech (15%), and clean energy technology (8%).
Published by HT Digital Content Services with permission from VC Circle.