Sycamore, a Nigerian digital lender, has received an SEC fund manager license, allowing it to expand into asset management. The company plans to offer diverse investment portfolios and enhance its mobile app for better user experience. This initiative aims to meet the demands of middle-income earners and everyday Nigerians, positioning Sycamore for significant growth in the investment sector.
Sycamore, a digital lender in Nigeria with ₦10 billion in assets, has received a fund manager license from the Securities and Exchange Commission (SEC), marking a significant diversification beyond its traditional lending operations. This expansion aims to cater to the increasing demand for accessible investment opportunities among retail and institutional investors in Nigeria.
The new offerings will include diversified portfolios that encompass stocks, bonds, and money-market instruments, available in both local and foreign currencies. The company’s CEO, Babatunde Akin-Moses, highlighted the customer-driven nature of this expansion, noting that many of Sycamore’s 300,000 users, including freelancers and SMEs, are seeking more investment options.
“Securing our SEC license is the culmination of years of building institutional-grade compliance systems,” stated Akin-Moses. He emphasized that the venture into asset management is a strategic expansion that aligns with their existing lending framework.
The Nigerian investment landscape is dominated by established firms such as ARM, Stanbic IBTC, and FBNQuest, alongside fintech platforms like Bamboo and Rise. However, many of these services cater primarily to high-net-worth individuals or tech-savvy investors, leaving a gap for middle-income earners. Sycamore aims to fill this void by serving everyday Nigerians seeking user-friendly investment avenues.
In leadership changes, Sycamore has appointed Oluwagbenga Magbagbeola, the former Managing Director of ARM Securities, to head its new division, Sycamore Investment and Asset Management Limited (SIAML). Magbagbeola brings extensive capital markets experience, having worked at notable firms such as ARM Securities and FBNQuest.
Furthermore, Sycamore plans to enhance its mobile application with tools for real-time investment analytics and AI-driven portfolio management. The upgraded app will also introduce a multi-currency wallet that allows for transactions in USD, EUR, GBP, and NGN.
Onyinye Okonji, Sycamore’s co-founder and CCO, remarked, “We’re addressing a major gap in Nigeria’s investment market.” The aim is to make wealth management more inclusive, particularly as traditional asset management has often excluded significant segments of the population.
Sycamore anticipates that asset management will be a critical revenue source through management fees and performance incentives. Although specific growth projections have not been disclosed, the company plans to secure additional capital by late 2025 or early 2026 to fuel its growth initiatives across the African continent.
Additionally, Sycamore intends to introduce alternative investment opportunities, including Real Estate Investment Trusts (REITs) and a USD-denominated investment product, in the near future. This strategic focus will enhance its competitive edge in the increasingly crowded digital investment sector.
While Sycamore is primarily recognized for its lending services, Akin-Moses perceives asset management as a new frontier. He concluded, “We’re democratizing access to wealth management solutions that can help more people invest in their desired lifestyle and future financial security.” Therefore, Sycamore is aiming to become a comprehensive resource for Nigerians looking to borrow and invest to enhance their financial wellbeing.
In conclusion, Sycamore’s recent license acquisition from the SEC marks a pivotal moment for the company as it transitions into asset management. By targeting underrepresented investors and enhancing technology for investment services, Sycamore seeks to democratize access to wealth management in Nigeria. The company plans to leverage its existing customer base and expand its offerings to include alternative investments, with the expectation that this venture will significantly contribute to its revenue generation and growth in the African market.
Original Source: techcabal.com
