Sycamore, a Nigerian peer-to-peer (P2P), lending startup, has closed an undisclosed seed financing round. It is looking to expand its operations.
Established in 2019 by Babatunde Akin, Onyinye Onji, and Mayowa Adeosun. Sycamore uses its proprietary risk assessment tools for business loans disbursed simultaneously via its website and the newly released mobile app.
The startup has disbursed millions to small businesses in Nigeria and also has a feature that allows users to manage loans made to family members. The Sycamore app’s “Loan Friends”’ feature enables people to make a loan request from a friend or family member, sends scheduled reminders, and automatically collects the loan on the due date.
“We’ve always been paranoid about giving our customers unique experiences. We didn’t want to just push out another “loan app” into the market without offering any additional value to them,” said Adeosun, Sycamore’s COO. “Being the customer-centric business that we are, we engaged our customers on their needs. We are proud that our app does face every day – the management of loans given to – or received from – friends and family almost every day.”
White Hibiscus Capital (WHC), a US-based VC firm, led the seed funding round. It also included a number private investors. Sycamore will be able to increase market awareness, double its financial education drive, hire the right engineering talent and expand its capability as it begins a plan for scaling to other African nations.
“Sycamore is doing an amazing job of getting loans to small businesses in record time,” said Bade Aluko, managing partner at WHC. “I love the team’s technologically-driven approach to making things seamless for its customers, and WHC looks forward to having Sycamore operational in other African countries.”