Alitheia Capital, Goodwell Investments Exit Baobab Nigeria, Marking Landmark Success For uMunthu Fund

Alitheia Capital and Goodwell Investments have announced their successful exit from Baobab Nigeria, marking the first-ever exit from their joint uMunthu Fund after over 12 years of investment.

The firms described the exit as a testament to Baobab Nigeria’s transformation, from a single-room microfinance institution (MFI) to a top-three nationally licensed MFI, underscoring the power of patient capital in delivering financial returns and social impact.

Since their initial 2012 investment in Baobab (formerly MicroCred), Alitheia and Goodwell played a crucial role in its expansion, particularly in northern Nigeria, where financial access was previously limited.

By 2023, financial exclusion in Nigeria had dropped from 70% to 26%, with Baobab scaling its customer base 12-fold, branch network 7.6-fold, and staff 3.2-fold. During this time, its balance sheet grew 37 times, and its loan book expanded 43.5 times.

With the exit, Baobab Group, the international parent company, now fully owns Baobab Nigeria, positioning it for further expansion and impact.

Meanwhile, Alitheia and Goodwell are preparing for new ventures, entering the final fundraising phase for uMunthu II Fund, seeking investors to replicate the success of Baobab Nigeria in other financial inclusion projects.