Aruwa Capital Management has secured over $20 million for female-led startups. The investors are dedicated to gender-balanced economic development in Africa.
Aruwa Capital Management, a Nigerian equity and gender-focused business, raised its first institutional round of funding with investment from the Visa Foundation and Mastercard Foundation Africa Growth Fund.
According to a statement sent by Lagos-based Aruwa via email, the two businesses assisted in raising more than $20 million for the Nigerian company to invest in women-led businesses on the continent who were having trouble raising finance.
Family-run companies from Africa, Europe, and the US as well as privately owned Nyala Venture, according to the statement, also contributed to the money.
Aruwa, a company founded in 2019 by Adesuwa Okunbo, a former investment banker at JPMorgan Chase Co., intends to invest $500,000 to $2.5 million “in women-focused small and emerging enterprises in Nigeria and Ghana,” the company stated.
Female entrepreneurs and startups in Africa have had less access to finance than their male counterparts. According to a research by the African Private Equity and Venture Capital Association, just 27% of the 300 firms that raised $3.5 billion in venture capital in the six months leading up to June were led by female founders or had at least one female founder.
According to the corporation, Aruwa has invested more than 45% of its cash in six companies that matched its investment requirements.
The fund, according to the statement, “aims to build more scalable and sustainable routes for economic growth and inclusion in the area.”