Nigerian based Aruwa Capital Management becomes first beneficiary of Mastercard Foundation Africa Growth Fund

The Mastercard Foundation Africa Growth Fund’s inaugural investment goes to Aruwa Capital Management, a 20 million USD fund with a gender-lens that supports Nigeria’s SMEs and is run for the first time by a woman.

Aruwa reported the successful closing of its first institutional fund, which exceeded its $20 million goal due to an oversubscription. Visa Foundation is the fund’s primary investor, followed by others including the Mastercard Foundation Africa Growth Fund, Nyala Venture, and well-known family businesses from Europe, America, and Africa.

Adesuwa Okunbo Rhodes created Aruwa Capital Management, a Lagos-based early-stage growth equity and gender lens investment fund, in 2019 to close the investment gap that women-led businesses in Africa experience.

The Fund targets investments in crucial industries like healthcare, fintech, renewable energy, and basic consumer products. It invests in women-focused small and emerging enterprises in Nigeria and Ghana. Aruwa invests in cutting-edge companies that are ready to scale up and offer crucial products and services to the rapidly growing female economy, as well as companies that were started or are driven by women or have a gender diverse workforce.

Aruwa revealed that its first institutional fund received more applications than planned, exceeding its $20 million target. With a $4 million investment, Visa Foundation served as the Fund’s lone institutional investor and served as its anchor. Aruwa is moreover the first investment from the newly formed $200 million Fund of Funds program, the Mastercard Foundation Africa Growth Fund, and the first investment from FSD.

Aruwa Capital is the first investment from the Mastercard Foundation Africa Growth Fund, a USD$200 million Fund of Funds that makes investments in and strengthens African investment vehicles that in turn support African SMEs. The company is run by a highly skilled, dynamic team of committed young professionals.

The only fund that is both wholly based in Nigeria and invests equity in early-stage SMEs there is Aruwa (ticket size USD 500k-2.5m). Strong effects for women and young people will result from its gender lens and SME focus. The fund has strong additionality. Aruwa was a small, country-specific fund that was run by a young, inexperienced team with no other team members.

“We chose Aruwa Capital as one of our first investments because we were impressed by the team’s grit, conviction, and depth of analysis, as well as by their dedication to advancing the interests of women and young people and their value addition for early-growth SMEs in Nigeria. We are eager to collaborate with the group and contribute to Aruwa Capital’s success. Sam Akyianu, Chief of Party at the Mastercard Foundation Africa Growth Fund, concluded.