Babatunde Akin-Moses Tells us about Sycamor’s Ambition for the rest of the Year

Babatunde Akin-Moses Tells us about

Sycamor’s Ambition for the rest of the Year

When we first spoke to Babatunde Akin-Moses in January, he accurately predicted the Nigerian Government’s excessive regulation of the tech ecosystem in H1 2021. He also projected that the year would be favorably disposed to the fintech sector and by extension, positively impact his startup Sycamor. Now, looking back at the first two quarters of the year, he suggests that it has rather been an interesting and unpredictable year. As for the remaining two quarters, the plan is to continue to expand Sycamor to other parts of the country. Enjoy the conversation.

It’s nice to talk to you again, Mr Moses. Earlier this year, we asked you about your expectations for the new year. Now, the first half of the year has come and gone. How would you assess H1 2021? Has it been what you expected?

It’s been an awesome half year to be honest. As a business, it has surpassed our expectations. On the broad macro level, we have seen a lot of moves by the government to regulate the Fintech space as much as possible. We have seen more regulation by the SEC and CBN. Amid all these regulations, even Twitter was not spared. I’d say it’s been a very interesting and unpredictable year so far.

Could you tell us some of the highlights of the first half for Sycamore? Any major accomplishments or hurdles that were overcome?

I think one of the biggest highlights is us doing our last year numbers within the first half of this year, by way of disbursements. It’s been a lot of hard work and some good luck, of course. But we are very proud of what we have accomplished. I think the biggest challenge has been attracting and retaining top talents. The talent market is really competitive, but I’m glad that we have been able

to attract the cream of the crop if I can say so myself.

What does it feel like to be a successful 40 under 40 entrepreneur in a place like Nigeria where many people your age (and those even older) are still struggling to find jobs?

I feel really honoured, to be honest. I’m thankful that I’m fortunate enough to be recognised among a distinguished few.

What would be your advice to a 30-something year old aspiring entrepreneur in Africa who wants to quit a good salaried job to pursue entrepreneurship?

Very bold decision to take! And that’s what it is – a decision; one that shouldn’t be taken lightly. The journey requires more guts and perseverance than intelligence. I’d say, be patient for the first 12 to 18 months. Business is not likely to take off immediately, and the process of stabilising, might seem like things are not working out. In the interim while the business is finding its footing, there should be a plan to have cash flow, no matter how little, during the early stages. This is particularly true when one has dependents. Finally, find a partner or two to go on the journey with you. It can get quite lonely so having people to support is helpful.

When we spoke to you earlier this year, you mentioned that one trend that would characterize the tech ecosystem in Nigeria this year is regulation. Certainly, there have been a lot of government regulations. But are they what you anticipated?

There are some I suspected would happen and some I didn’t. For example, the move against cryptocurrency, I suspected. Maybe not in the overnight manner it happened. But it wasn’t farfetched in my opinion. SEC’s move against certain investment models was also predictable. But I didn’t see the ban on companies that allowed people to trade foreign stocks. I don’t think it’s over by a long shot – we’ll probably still get some surprises before the end of the year.

Do you think these over regulations could possibly scare away investors?

Perhaps. It will probably make some investors nervous. But let’s remember that the economy is not made of technology players only. For people who want to play in the real sector, I think the government will be happy for them to come into the country to do business, especially since they have the potential to generate jobs and help us retain more foreign exchange through local substitutes.

BEA: Bearing in mind everything that has happened this year, do you think Nigeria is ready for a digital economy?

The question of readiness is a tough one to answer, because I think it is a continuous journey for any country. In fairness, the government is doing it’s best to digitise as many services as possible. From company registration, to filing of taxes, to drivers’ license issuance, etc. Of course, there have been issues with moving a lot of these processes online. I think the government should be commended for making genuine efforts to do so. I will suggest that the government play a more advisory and regulatory role to private companies, rather than operating actively.

As someone with experience in courting investors, what do you think are some of the biggest mistakes entrepreneurs’ make when seeking funding and how can they be avoided?

I would say lack of transparency. It’s best to be as open and honest as possible. Then finding investors that fit your profile or invest in a particular industry. Not every investor is a good match for every entrepreneur. Not knowing your business or your numbers is also not a great thing – especially when questions are being asked that the entrepreneur should know.

Would you tell us five essential things that are required to build a successful tech company in Nigeria?

Great team, swift execution, good timing, a viable business model, and a good network

What are Sycamore’s projections/ expectations for the rest of the year?

We expect to have a more national spread across the country, beyond our present focus on the south-west. We also plan to launch two more digital products, which we anticipate will be a game changer, and will be adopted by thousands of businesses across West Africa. Watch this space!