Sycamore, a prominent Nigerian digital lender managing assets worth ₦10 billion, has recently obtained a fund manager license from the Securities and Exchange Commission (SEC). This strategic move marks a significant expansion beyond its primary lending operations, as the company aims to capitalize on the increasing demand for accessible investment options among Nigeria’s growing retail and institutional investor base.
With this new license, Sycamore plans to offer a diverse range of investment portfolios that include stocks, bonds, and money-market instruments, available in both local and foreign currencies. This expansion is largely driven by customer feedback, with CEO Babatunde Akin-Moses highlighting that many of Sycamore’s 300,000 users—comprising freelancers and small to medium-sized enterprises (SMEs)—have expressed a strong interest in having more accessible investment opportunities.
“Securing our SEC license is the culmination of years of building institutional-grade compliance systems,” Akin-Moses stated. He emphasized that this initiative does not signify a shift away from lending; rather, it represents a strategic expansion that complements the company’s core business model.
The investment landscape in Nigeria is currently dominated by a few key players, including established firms like ARM, Stanbic IBTC, and FBNQuest, as well as newer fintech entrants such as Bamboo and Rise. While these platforms have made strides in making wealth management more accessible, they primarily cater to high-net-worth individuals or tech-savvy retail investors. Sycamore identifies a significant opportunity in serving the middle market—specifically freelancers, SMEs, and everyday Nigerians who often find themselves without straightforward investment pathways.
To spearhead this new division, Sycamore has appointed Oluwagbenga Magbagbeola, the former Managing Director of ARM Securities. Magbagbeola brings a wealth of experience to the role, having spent 17 years in capital markets and holding previous positions at ARM Securities, FBNQuest Securities, and Profund Securities.
In addition to its new investment services, Sycamore plans to launch an upgraded mobile application that will feature real-time investment analytics and AI-driven portfolio management tools. The app will also include a multi-currency wallet, enabling users to hold and invest in various currencies, including USD, EUR, GBP, and NGN. This positions Sycamore alongside other Nigerian tech investment firms, such as Bamboo and Rise, in making wealth management services more accessible to the younger demographic in Nigeria.
“We’re addressing a major gap in Nigeria’s investment market,” said Onyinye Okonji, Sycamore’s co-founder and Chief Commercial Officer (CCO). “Traditional asset management has remained out of reach for many Nigerians, and our goal is to change that.”
Sycamore anticipates that its asset management services will become a significant revenue stream, generating income through management fees and performance-based incentives. However, the company has not yet disclosed specific growth projections. Looking ahead, Sycamore plans to raise additional capital in late 2025 or early 2026 to further support its growth ambitions across the African continent.
In addition to traditional asset classes, Sycamore intends to introduce 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 effectively in a market that is increasingly saturated with digital investment alternatives, targeting both retail and institutional investors.
While Sycamore has built its reputation primarily as a lending institution, Akin-Moses believes that asset management represents the next frontier for the company. “We’re democratizing access to wealth management solutions that can help more people invest in their desired lifestyle and future financial security,” he remarked. By positioning itself as a comprehensive platform for Nigerians seeking to borrow, invest, and grow their wealth, Sycamore aims to provide a holistic approach to financial empowerment—one investment product at a time.
