Twelve years after investing in Baobab Nigeria (first via their GWAMDC fund and later uMunthu), Alitheia Capital and Goodwell Investments have announced the first exit of their joint uMunthu Fund from Baobab Nigeria, which provides inclusive banking services to individuals and businesses in underserved areas.

In a statement made available to The Guardian, the Marketing Communications Manager at Goodwell, Liz Keel, said this is not only a testament to the impressive growth and financial stability Baobab Nigeria has achieved with the support of the two investors, but it also proves the ability of patient capital to drive both financial and impactful returns.

Adding that the impact of the now-completed partnership is far-reaching, she said Baobab Nigeria has grown from serving 19,000 customers through a regional network of five branches to serving 230,000 customers through a national network of 38 branches.

Revealing that inclusive financial services was the core motivation for Alitheia and Goodwell’s investment in Baobab in 2012, she said this led to a further investment through the uMunthu Fund in 2015. “uMunthu represented the first private capital investors working in northern Nigeria and since that first investment, Alitheia and Goodwell have poured hands-on expertise into Baobab.”

She said uMunthu supported the bank’s professionalisation, driving its growth from a unit microfinance institution (MFI) to a top national MFI; advised on financial structuring and provided access to local networks and a deep understanding of the local business environment.

Adding that at the start of the investment relationship, up to 70 per cent of Nigeria’s overall population lacked access to financial services with more drastic numbers in northern Nigeria; she said over the last decade, Baobab Nigeria has played a strong role in closing the financial inclusion gap, with current statistics citing that 26 per cent of Nigerians lacked access to financial services in 2023, a notable improvement.

Now fully owned by the international Baobab Group, she said the Nigerian team plans to continue serving the underserved, positively impacting businesses and communities that have come to rely on or are just now learning of Baobab’s inclusive, scalable financial services.

Alitheia Managing Partner, Tokunboh Ishmael, said they are proud of what has been achieved together and look forward to seeing where the future will take Baobab Nigeria.

“Alitheia and Goodwell teams are continuing this pragmatic, locally led, hands-on approach with the rest of the uMunthu portfolio and are optimistic about the potential for additional exits in 2025. Meanwhile, the uMunthu II Fund is entering its final fundraising phase and is actively seeking investors who want to be involved in the kind of success and impact Baobab Nigeria has demonstrated.”