By Oyinkansayo Wole-Bodunde
Alitheia Capital and Goodwell Investments have successfully exited their investment in Baobab Nigeria, a leading microfinance bank, after over a decade of partnership.
This exit marks a significant milestone for the uMunthu Fund, which invested in Baobab in 2012 and again in 2015.
During their investment tenure, Baobab Nigeria transformed from a regional player in Kaduna state to a national microfinance bank with 38 branches across 16 states, serving 230,000 customers. The bank maintained its commitment to financial inclusion, with average loan and deposit sizes remaining small.
Alitheia and Goodwell’s investment was driven by a shared vision for inclusive financial services. As the first local investors in Baobab, they brought hands-on expertise, supporting the bank’s professionalization, governance, and growth.
The partnership had a profound impact on Nigeria’s financial landscape. At the start of the investment, 70% of Nigeria’s population lacked access to financial services. By 2023, this number had decreased to 26%. Baobab Nigeria played a significant role in closing this financial inclusion gap.
“This was a bank that was operating out of a single room in northern Nigeria when we invested, and today it is top-three nationally licensed microfinance bank. We’ve walked a journey of leadership, governance, and financial and impactful growth, scaling from small beginnings through to the top-tier national microfinance bank that it is today. We’re proud of what’s been achieved together, and look forward to seeing where the future will take Baobab Nigeria,” Alitheia Managing Partner Tokunboh Ishmael, said.
The exit shows the potential for sustainable success in emerging markets. Alitheia and Goodwell are continuing their investment approach with the rest of the uMunthu portfolio and are seeking investors for their uMunthu II Fund, which is entering its final fundraising phase.
