Aruwa Capital Fund II

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Project overview

Aruwa Capital Fund II (“ACF2”) is a female founded and led Nigerian investment company, investing in early-stage growth equity for fast growing SMEs with a strong gender lens. ACF2 captures the significant opportunity of companies that are too big for venture capital and too small for private equity and focuses on climate and energy access through clean technologies, healthcare and consumer goods.

Funding objective

USD 6m Equity investment for early-stage growth equity in fast growing SMEs with a strong gender lens. The objective is to support Aruwa in its mission to scale women-led and women focused, high-impact businesses in Nigeria (>80%) and Ghana.

Investment rationale

ElectriFI is supportive of ACF2 for the following reasons:

High impact since the Fund is 100% gender lens and 2x challenge focused, helping to close the USD 42b gender funding gap between female and male entrepreneurs in Africa.
Strong financial additionality: ElectriFI’ s investment supports a swift fund close in a difficult fundraising environment and opening the way for DFIs’ participation.
Strong strategic additionality: ElectriFI’ s investment influences the Fund’ strategy towards a stronger cleantech/renewable energy focus.
Operational additionality: ElectriFI deploys additional equity transactions in Nigeria with less risk through the diversification advantage of a Fund, while for co-investments in the Nigeria cleantech ecosystem.