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Yikodeen, a leading manufacturer of safety footwear and the sole NCDMB-certified supplier to the oil and gas sector, has secured a $1.5 million investment from Aruwa Capital Management to significantly expand its production capacity, a strategic partnership representing a major leap forward in the company’s mission to build world-class production capabilities and scale its footprint across the region.
The investment from Aruwa Capital’s sophomore fund, Aruwa Capital Fund II, will fund Yikodeen’s factory recommissioning and capacity expansion as well as accelerate the company’s growth trajectory, which has already seen impressive 10x revenue growth with gross profit margins exceeding 50%, even while maintaining zero debt. The recommissioned factory is scheduled to be unveiled at a major event on June 24, 2025, with production targeted to reach new capacity levels by Q3 in 2025.
“This partnership with Aruwa Capital represents more than just financial investment; it’s a vote of confidence in the company’s manufacturing excellence,” Founder and CEO of Yikodeen, Shamsideen Atunde, said.
“With this support, we are positioned to transform our production capabilities, increase our output tenfold, expand our product lines beyond safety footwear, and generate significant economic value through job creation and import substitution,” Atunde also said.
Since its founding in 2016 producing just 20 pairs of footwear daily, Yikodeen’s operations have achieved substantial scale with up to 500 pairs produced daily, establishing as a trusted supplier to Nigeria’s most demanding industries as highlighted by its delivery of over 30,000 pairs of safety boots to the NLNG Train 7 project, with projections indicating that the investment will enable further expansion to 2,500 pairs daily across multiple product categories once its newly recommissioned facility reaches full operational capacity to position the compamy as the largest safety footwear manufacturer in West Africa.
According to Statista, the Nigerian footwear market, estimated at $2.1 billion in 2024, is projected to reach $2.6 billion by 2029, with the safety footwear segment alone valued at $700 million. Yikodeen is strategically positioned to capture a significant share of this growing market, leveraging its unique status as one of the sole indigenous manufacturers licensed to supply safety footwear to Nigeria’s oil and gas industry.
Founder and Managing Partner of Aruwa Capital Management, Adesuwa Okunbo Rhodes, emphasised the significance of the strategic investment: “Yikodeen exemplifies the type of business capable of driving meaningful economic transformation in Nigeria due to its manufacturing excellence, impressive certifications from standards organisations, and remarkable growth trajectory all of which makes it an ideal investment partner. We are excited to work with Yikodeen to redefine Africa’s footwear landscape while supporting Nigeria’s shift from import dependency to manufacturing self-sufficiency,” Rhodes said.
Aruwa Capital Management, a Lagos-based growth equity and gender-lens fund investing in Nigeria and Ghana, has established a reputation for rigorous investment selection and hands-on support to management teams, with backing from institutional investors that include Visa Foundation, Mastercard Foundation Africa Growth Fund, and Nyala Venture.
The investment will drive a comprehensive transformation of Yikodeen’s manufacturing capabilities through several strategic initiatives, with funding enabling the acquisition of advanced production equipment that would enhance both precision and efficiency across all production lines while increasing safety boots production capacity by 10x. The capital will also support the expansion of Yikodeen’s factory, making it the largest safety footwear production facility in West Africa. Furthermore, advanced quality control systems, including digital monitoring and automated inspection technologies, will ensure world-class standards across production lines.
Beyond its commercial objectives, Yikodeen demonstrates a deep commitment to social impact and gender diversity. The company currently employs over 80 skilled workers with 61% female representation among factory workers and 33% of senior management positions held by women. In line with Aruwa’s gender lens investing strategy, Yikodeen will continue implementing family-friendly policies and fair wage practices to ensure inclusivity. The expansion is projected to create approximately 200 additional skilled jobs, providing valuable employment opportunities while developing technical expertise within Nigeria’s workforce.
Through its annual vocational training programmes, Yikodeen has equipped over 200 individuals with leatherwork skills, driving community development and fostering job creation. As part of its broader impact efforts, in addition to donating more than 1,000 pairs of shoes each year to children in underprivileged communities. The investment will also support the implementation of circular economy practices, including a footwear recycling program that aims to reduce environmental impact while creating additional value streams.
Industry analysts have noted that the $1.5 million investment comes at a critical time for manufacturing in Nigeria as government policies increasingly encourage local production. “By investing in domestic manufacturing capacity, we are not just building a company, we are contributing to Nigeria’s economic sovereignty. Every pair of shoes we make represents forex savings, local job creation, and craftsmanship that rivals anything found in advanced manufacturing markets. Our ISO, SON, and industry-specific certifications prove that Nigerian manufacturing can meet global standards,” Atunde further said.
