Aruwa Capital makes follow-on investment into Nigerian hibiscus exporter
Aruwa Capital Management announced an additional investment into AgroEknor, a hibiscus flower exporter and wellness brand.
** For the best experience, download the free Africa Private Equity News app Android | iOS **
Aruwa Capital Management, an early-stage growth equity and gender lens fund investing in Nigeria and Ghana, announced an additional investment into AgroEknor, a hibiscus flower exporter and wellness brand.
Since Aruwa’s last investment in December 2022, AgroEknor has achieved significant milestones, achieving rapid growth through strategic diversification and backward integration. The company has completed its hibiscus flower processing chamber, making it one of only seven approved chambers in Nigeria. This development has significantly boosted AgroEknor’s export capacity and quality, allowing the company to command higher prices for its products and increase its margins.
Furthermore, AgroEknor’s Farmers Education and Empowerment Project (FEEP) has registered close to 3,000 smallholder farmers, with 11,000 more on the wait list. The FEEP programme has doubled the yield per hectare for these farmers, providing AgroEknor with a competitive sourcing advantage.
AgroEknor has also launched YieldPro, a technology-driven operating system designed to sustainably increase farm yields for smallholder farmers. YieldPro provides a cloud-based directory for identity management and farm monitoring, offering end-to-end traceability for agricultural processes from cultivation to harvest. This technology not only ensures transparency and accountability but also helps farmers adopt sustainable practices, thereby minimising soil degradation and enhancing overall productivity.
In addition to its technological advancements, AgroEknor has entered into strategic partnerships for the manufacture and distribution of hibiscus concentrates to international markets such as the UK, USA, and UAE. which further adds to the much needed export of value-added products.
The global hibiscus market is expected to grow by 7.5% annually between 2021 and 2025 to $490 million, driven by a preference for a healthy lifestyle. Nigeria is increasingly important to the global supply chain of hibiscus and is growing faster than the global market due to the global preference for Nigeria’s healthier, non-GMO hibiscus varieties and the unmet demand in the market for non-GMO hibiscus. Global non-GMO demand is expected to grow by 12.5% per annum for the next four years, outstripping overall demand for hibiscus as consumers seek non-GMO wellness products.
The proceeds of this investment will enable AgroEknor to meet pent up demand, fulfil more export orders, improve its warehouse infrastructure, drive increased utilisation of their processing chamber, increase its investments in FEEP and drive further adoption of its technology product.
“Our partnership with Aruwa has been transformational and pivotal in our growth journey as our first institutional equity investors. The completion of our processing chamber has opened new markets for us, enabling us to command premium prices. The success of our FEEP programme continues to empower farmers, and the launch of YieldPro is set to revolutionise our farming practices for AgroEknor and third party clients. Our new partnerships for hibiscus concentrate distribution highlight our strategic diversification and commitment to delivering high-quality wellness products globally. This additional investment will allow us to meet increasing demand, enhance our infrastructure, and secure our supply chain, positioning us for further growth and impact. We are grateful to the Aruwa Capital team for their continued support,” said Timi Oke, CEO of AgroEknor.
“We are thrilled to continue to support AgroEknor’s remarkable progress. The company’s achievements, including the completed processing chamber, the FEEP programme’s success, and the innovative YieldPro system, demonstrate capacity for sustainable growth and significant impact and we look forward to their continued success and impact. This investment will enable the company to scale further, improve its operational infrastructure, expand its farmer empowerment initiatives and continue to diversify its revenue streams, reflecting our commitment to gender-lens investing and sustainable economic development. We look forward to their continued success and impact,” said Adesuwa Okunbo Rhodes, founder and managing partner of Aruwa Capital.
Stay ahead in Africa's private equity and venture capital sector with Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Subscribe here