Nigerian fintech firm Sycamore has completed a private note offering that was oversubscribed by 113 percent, signaling deepening investor appetite for opportunities in the country’s underfinanced small business sector.

The offering, arranged by Lagos-based BAS Capital, was initially structured at a smaller size but drew demand that more than doubled expectations.

“The level of oversubscription validates our thesis that lending to Nigerian businesses represents one of the most compelling fintech opportunities in Africa,” said Babatunde Akin-Moses, Sycamore’s CEO and co-founder.

Proceeds from the transaction will enable Sycamore to scale its business lending operations and expand its reach across Nigeria’s 36 states.

The oversubscription comes amid a documented $32.2 billion financing gap for Nigerian MSMEs, according to the International Finance Corporation (IFC).

While credit to the private sector in Nigeria stands at just 14.1 percent of GDP, far below the Sub-Saharan African average of 35.8 percent, platforms like Sycamore are stepping in to fill the void using alternative underwriting models.

“We initially structured a smaller note size, but after due diligence revealed Sycamore’s strong unit economics and growth trajectory, demand from note subscribers pushed us to increase the offering substantially,” said Abdulateeef Hussein, CEO BAS Capital.

The timing coincides with Sycamore’s regulatory expansion, having recently secured licensing from Nigeria’s Securities and Exchange Commission for fund management operations.

The company also appointed Oluwagbenga Magbagbeola, former managing director of ARM Securities, to lead its asset management division.

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“This capital injection positions us to serve underbanked business segments highlighted in recent PWC research,” said Magbagbeola, whose capital markets expertise helped structure the note offering.

“The data shows these businesses increasingly need alternatives to traditional banking, particularly for the smaller loan sizes that banks often find commercially unviable.”

Co-founder and CFO Mayowa Adeosun stated that the company plans to significantly increase loan disbursements while maintaining its technology-driven underwriting standards.

MD of Plethoria Group, Emmanuel Egbumokei, who provided advisory services on the transaction, noted the successful note offering signals broader institutional confidence in Nigeria’s fintech sector. “This demonstrates investor appetite for quality fintech assets despite macroeconomic headwinds,” he added.

Founded in 2019 as a peer-to-peer lending platform, Sycamore has evolved into a tech-driven financial services firm focused on providing credit to small and medium-sized businesses, a segment largely ignored by commercial banks due to high documentation requirements and credit risks.

Sycamore uses proprietary algorithms to assess creditworthiness, allowing it to serve sectors such as retail, manufacturing, and services. The company says it has disbursed thousands of loans to Nigerian businesses and built a user base of over 300,000.