Africa Digest News

Aruwa Capital Management (“Aruwa”), an early-stage growth equity and gender lens fund investing in Nigeria and Ghana is pleased to announce a $2 million investment into Fastizers (the “Company”), a local manufacturer of snack foods and confectioneries in Nigeria. Founded in 2010, Fastizers began as a hobby in the personal kitchen of Deborah Lawson and has since evolved into a rapidly growing snack food manufacturing company in Nigeria. Since it began operations in 2010, the Company has grown its product selection from just one snack to seven varieties of tasty snacks which can be found at stores Nationwide. Fun Cookies©, its flagship product has become a household name across Nigeria, solidifying Fastizers presence in the Nigerian snack food industry. Today, Fastizers has evolved from a small-scale business started with just N960 ($1.5) in a small kitchen selling to the immediate community (i.e., family and friends) of the founder, into a multi-million-dollar company with a 2-hectare production facility producing over 30 metric tons of delicious snacks daily. The Company has extended its distribution network now offering its products across 31 states in Nigeria.

The Company plans to become a leading player in the Nigerian snack foods industry, which was estimated to be worth $883 million in 2021 and is expected to reach $1.5 billion by 2024 at an estimated annual growth rate of 20%. The upward trend in consumption expected will primarily be driven by increased urbanization and population growth. Sales in the Sweet biscuits, snack bars, and fruit snacks segment of which most of Fastizers products falls under is also expected to grow from $578 million recorded in 2021 to $695 million by 2026 representing a 20% growth which further validates the size of the opportunities for Fastizers within the industry with many consumers often looking for cheaper alternatives to foreign brands.

The Company has already commenced plans to expand both its factory operations and product offerings, with the introduction of a new fully automated line which will be able to produce over 1,200kg of snack foods per hour allowing Fastizers continue delivering its tasty snack food and confectioneries to its growing customer base across Africa. As a local manufacturer of snack foods, the Company is also creating jobs, and providing economic opportunities for indigenous players within its value chain as it sources over 70% of its raw materials locally. With the completion of the new automated line, the Company plans to introduce a variety of new products to target a wider range of consumers. The new products will join the already delicious range of snacks offered by Fastizers which include Nibit©, Sweetstix©, and FunCookies© that are currently available through various channels across Nigeria made possible through Fastizers large distribution network. The new production facility is expected to provide an additional 100 jobs for the local community.

“We are excited to partner with Aruwa Capital in our journey and welcome them as the first institutional equity investors in our business. This investment takes Fastizers to the next level. We can meet increased demand for our products by expanding our production capacity which has been one of our biggest challenges in recent years. This investment will also allow us to expand our distribution network giving us the ability to continue providing our range of delicious snacks to our consumers both within and outside Nigeria. We are grateful to the Aruwa Capital team for their belief in our vision and look forward to the additional strategic benefits this partnership holds for Fastizers.”

-Debby Lawson, Founder & COO of Fastizers

“We are thrilled to announce this investment and support the long-term growth of Fastizers as it aligns with our investment objectives and our determination to back indigenous female founded businesses that lack access to patient growth capital. Since inception, the Company has continued to grow into a household name in the snack foods sector in Nigeria, with its products becoming increasingly popular across Nigeria. This investment supports our ethos of enhancing import substitution by backing a local manufacturer of snack foods that can match foreign brands in areas of taste, quality, and consistency. In line with Aruwa’s gender lens investing strategy, Fastizers is founded and led by a woman with over 46% female ownership, 45% female representation across its workforce, and 59% female representation amongst its distributors. We are very confident in the Company’s ability to scale across Africa and are thrilled to be partnering with this dedicated team for the exciting journey ahead.”

-Adesuwa Okunbo Rhodes, Founder & Managing Partner of Aruwa Capital

We would also like to thank the advisors to the transaction; Pedabo for providing financial due diligence services to Aruwa Capital, Duale, Ovia & Alex-Adedipe for providing legal due diligence and transaction advisory services to Aruwa Capital, and African Foresight Group providing commercial due diligence services to Aruwa Capital. Mak Solicitors and O.N.O Legal Practice provided legal services to Fastizers and DevCap Advisory partners provided financial and transaction advisory services to Fastizers. Thank you to all advisers for a successful completion of the transaction.

About Fastizers

Fastizers is a leading snacks manufacturer offering quality and affordable snacks to consumers in Nigeria. The Company currently operates both a semi-automated and an automated line at its production facilities based in Agbara, Lagos state with over 250 employees.