In a move set to revolutionize Nigeria’s manufacturing landscape, indigenous footwear innovator Yikodeen has secured a $1.5 million strategic investment from Aruwa Capital Management to launch West Africa’s first smart manufacturing facility dedicated to safety footwear and other product lines. This funding milestone from Aruwa’s sophomore fund will transform Yikodeen from a successful local producer that has already achieved 10x revenue growth with over 50% gross profit margins into a technology-driven manufacturing powerhouse.
The partnership with Aruwa Capital, which served as the sole investor in this round, will enable Yikodeen to implement Industry 4.0 technologies in Nigeria’s footwear sector, introducing automation, data-driven production, and digital integration previously unseen in the region’s manufacturing ecosystem. This technological advancement will support Yikodeen’s expansion into new product lines beyond its current safety footwear offerings while addressing the $2.1 billion Nigerian footwear market projected to reach $2.6 billion by 2029.
“Nigeria’s manufacturing future requires blending craftsmanship with cutting-edge technology,” said Shamsideen Atunde, Founder and CEO of Yikodeen. “As the only NCDMB-approved manufacturer and supplier of safety footwear in Nigeria’s oil and gas industry, we’ve already proven our capability to meet international standards. This investment allows us to pioneer a digital manufacturing approach that maintains the human expertise that distinguishes our products while leveraging technology to compete globally in both quality and scale across multiple product categories.”
Since its 2016 launch, Yikodeen has defied conventional wisdom about Nigerian manufacturing capabilities by producing internationally competitive footwear. The company has bootstrapped its growth from 20 pairs of shoes daily to 500 pairs while maintaining zero debt, serving major industrial clients with ISO-certified safety footwear and consumers with its Yiko Plus athletic line. A testament to its quality and reliability, Yikodeen has successfully supplied over 30,000 pairs of safety boots to the NLNG Train 7 project. With Aruwa’s backing, Yikodeen plans to implement a technological leap that will increase production capacity to 2,500 pairs daily across multiple product lines.
The $1.5 million investment will be deployed in three strategic areas: acquiring advanced production equipment, expanding marketing and business development initiatives to onboard more blue-chip corporate clients, and optimizing operational efficiency through enhanced capacity utilization. Central to this evolution is the implementation of production monitoring systems that will provide real-time visibility into every aspect of the manufacturing process, enabling data-driven optimization and predictive maintenance. This digital foundation will be enhanced by the integration of AI-driven quality control processes that leverage machine learning to detect even subtle quality variations, ensuring unprecedented consistency and precision in every product.
On the production floor, the deployment of semi-automated production lines will create virtual replicas of physical manufacturing processes, allowing for sophisticated simulation, optimization, and predictive capabilities previously unavailable in Nigerian manufacturing.
Beyond technological innovation, Yikodeen demonstrates a strong commitment to social impact and gender diversity. The company currently employs over 80 workers with an impressive 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 has implemented family-friendly policies and fair wage practices to ensure inclusivity. The company’s annual vocational training programs have equipped over 200 individuals with skills in leatherwork, contributing to community development and job creation. Additionally, Yikodeen donates over 1,000 pairs of shoes to children in need each year.
Adesuwa Okunbo Rhodes, Founder and Managing Partner of Aruwa Capital Management, highlighted the innovation angle that attracted their investment: “Yikodeen represents the future of African manufacturing, tech-enabled, globally competitive, and proudly local. We’re investing not just in expanded production, but in a technological transformation that can become a blueprint for Nigerian manufacturing across sectors. Their impressive track record, including key industry certifications and serving as a trusted supplier to Nigeria’s oil and gas sector, demonstrates their potential to lead Nigeria’s manufacturing renaissance. We are excited to work with Yikodeen to redefine Africa’s footwear landscape.”
The investment comes as Nigeria seeks to reduce its footwear import bill while creating skilled employment opportunities in the manufacturing sector. By combining advanced manufacturing technology with deep local market knowledge, Yikodeen aims to demonstrate that Nigerian manufacturers can compete on quality and efficiency with global producers while providing substantial social impact through skills development and economic empowerment.
“This partnership is about proving that world-class manufacturing innovation can emerge from Nigeria,” Atunde explained. “Each technological advancement we implement creates new possibilities for Nigerian talent to develop globally relevant skills while producing products that serve our local market’s specific needs. By expanding across different product lines and implementing circular economy principles, we’re not just manufacturing products, we’re creating sustainable value for our economy.”
The company plans to unveil its smart factory at a major commissioning event on June 24, 2025, which will showcase how traditional manufacturing expertise combined with digital transformation can create a new model for indigenous industrial development.
About Yikodeen
Yikodeen is an indigenous Nigerian footwear manufacturer committed to merging traditional craftsmanship with technological innovation. With product lines spanning industrial safety boots, school shoes, and athletic footwear through its Yiko Plus brand, Yikodeen serves industrial clients, educational institutions, and consumers with a focus on quality, durability, and technological advancement. Since 2016, Yikodeen has grown to employ over 80 skilled Nigerian workers with 61% female representation among factory workers. As the only NCDMB-approved manufacturer and supplier of safety footwear in Nigeria’s oil and gas industry, Yikodeen holds multiple certifications including ISO 9001:2015 and has successfully supplied over 30,000 pairs of safety boots to the NLNG Train 7 project.
About Aruwa Capital Management
Aruwa Capital Management is a Lagos-based growth equity and gender-lens fund investing in Nigeria and Ghana. Founded in 2019 by Adesuwa Okunbo Rhodes, who leverages more than a decade of investment banking and private equity experience from leading global organizations. The firm invests in innovative businesses poised for scale across sectors including healthcare, fintech, renewable energy, and essential consumer goods. The investment in Yikodeen was completed from Aruwa’s sophomore fund, Aruwa Capital Fund II. Backed by institutional investors including Visa Foundation, Mastercard Foundation Africa Growth Fund, and Nyala Venture, Aruwa has established a reputation for rigorous investment selection and hands-on portfolio management to improve company operations and performance.
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