Sycamore, a Nigerian digital lender, has received a fund manager license from the SEC to expand into asset management. The company plans to offer diverse investment portfolios tailored for freelancers and SMEs. Sycamore aims to democratize investment access and boost revenues through new digital services and additional investment products, positioning itself strongly in the Nigerian investment landscape.
Sycamore, a Nigerian digital lender with ₦10 billion in assets, has obtained a fund manager license from the Securities and Exchange Commission (SEC), marking its entry into asset management. This strategic move aims to meet the rising demand for investment options from Nigeria’s retail and institutional investors by expanding its services beyond lending.
The company’s investment offerings will include diverse portfolios featuring stocks, bonds, and money-market instruments, available in both local and foreign currencies. CEO Babatunde Akin-Moses highlighted the increasing demand from Sycamore’s user base of 300,000, particularly from freelancers and SMEs seeking accessible investment solutions.
“We’re not pivoting from lending; this is a strategic expansion that complements our core business,” Akin-Moses stated, emphasizing the importance of institutional-grade compliance systems that allowed them to secure the SEC license.
The investment landscape in Nigeria is predominantly controlled by established firms like ARM and Stanbic IBTC and newer entrants such as Bamboo. Yet, these platforms typically cater to affluent clients or tech-savvy investors. Sycamore is targeting underserved demographics, particularly freelancers and everyday Nigerians, with practical investment pathways.
To lead its new division, Sycamore Investment and Asset Management Limited (SIAML), the company has appointed Oluwagbenga Magbagbeola, previously managing director at ARM Securities. He brings considerable expertise from his 17 years in the capital markets sector, previously operating in various securities firms.
Sycamore aims to enhance its services through an upgraded mobile app, featuring real-time investment analytics and AI-enhanced portfolio management. This app will allow users to hold investments in multiple currencies, including USD, EUR, GBP, and NGN, representing a significant improvement to their user experience.
“With this initiative, we are addressing a major gap in Nigeria’s investment market,” co-founder and CCO Onyinye Okonji remarked, underscoring the need to make traditional asset management accessible to more Nigerians.
Sycamore anticipates that asset management will become a key revenue stream through management fees and performance incentives, although specific growth projections have not been disclosed. The company intends to seek additional capital in late 2025 or early 2026 to facilitate its ambitions across Africa.
In addition to conventional asset classes, Sycamore plans to introduce alternative investments, including Real Estate Investment Trusts (REITs) and a USD-denominated product, expanding its competitive edge in the saturated digital investment market. While lending is Sycamore’s mainstay, Akin-Moses views asset management as the future frontier for growth.
“We’re democratizing access to wealth management solutions,” he added, underscoring the company’s mission to empower individuals to invest towards their desired lifestyles and achieve financial security. Sycamore is evolving into a comprehensive platform for Nigerians to borrow, invest, and elevate their financial prosperity with each new product.
Sycamore’s entry into asset management, backed by its new SEC license, represents a significant expansion of its services beyond lending. By targeting underserved demographics and enhancing customer experience through technology, Sycamore aims to fill crucial gaps in Nigeria’s investment market. With plans to introduce diverse investment options and an upgraded app, the company is poised to redefine wealth management accessibility for retail and institutional investors alike, setting the stage for substantial growth in the coming years.
Original Source: techcabal.com
