Sycamore, a Nigerian digital lender with ₦10 billion assets under management, has secured a fund manager license from the Securities and Exchange Commission (SEC) to operate as a fund and portfolio manager. This move signals a significant expansion beyond its core lending business, aiming to tap into the growing demand for accessible investment options among Nigeria's burgeoning retail and institutional investors.
The company will offer diversified portfolios across stocks, bonds, and money-market instruments in local and foreign currencies. This expansion is driven by customer demand, with many of Sycamore's 300,000 users, including freelancers and small and medium-sized enterprises (SMEs), expressing a desire for accessible investment options.
Sycamore's CEO, Babatunde Akin-Moses, noted that securing the SEC license is the culmination of years of building institutional-grade compliance systems. He emphasized that this expansion is not a pivot from lending, but rather a strategic move that complements their core business. The company has appointed Oluwagbenga Magbagbeola, former Managing Director of ARM Securities, to lead its new division, Sycamore Investment and Asset Management Limited (SIAML).
Nigeria's investment market is currently dominated by a handful of legacy firms and newer fintech challengers. However, most of these platforms cater to either high-net-worth individuals or tech-savvy retail investors. Sycamore sees an opportunity to fill the gap in the middle, providing investment pathways for freelancers, SMEs, and everyday Nigerians who lack straightforward investment options.
The company plans to launch an upgraded mobile app equipped with real-time investment analytics and AI-powered portfolio management. The app will also feature a multi-currency wallet, allowing users to hold and invest in USD, EUR, GBP, and NGN. Sycamore joins a growing list of Nigerian tech investment firms making wealth management services accessible to young Nigerians.
Sycamore expects asset management to become a significant revenue driver, generating income through management fees and performance-based incentives. Although the company has not disclosed specific growth projections, it plans to raise additional capital in late 2025 or early 2026 to support its growth ambitions across Africa.
In addition to traditional asset classes, Sycamore aims to offer alternative investments, starting with Real Estate Investment Trusts (REITs) and a USD-denominated investment product in the coming months. This strategic shift positions Sycamore to compete in a market saturated with digital investment alternatives, targeting both retail and institutional investors.
According to Akin-Moses, asset management represents the next frontier for the company. He believes that Sycamore is democratizing access to wealth management solutions that can help more people invest in their desired lifestyle and future financial security.
Sycamore is now positioning itself as a one-stop shop for Nigerians looking to borrow, invest, and grow their wealth – one investment product at a time. As the company continues to expand its offerings, it will be interesting to see how it navigates the competitive Nigerian fintech landscape and meets the growing demand for accessible investment options.