Regfyl Raises $1.1 Million to Expand Team, Build New Compliance Product

Regfyl, a Nigerian startup specialising in fraud detection and digital identity verification, has secured $1.1 million in pre-seed funding. With this new capital, the company plans to expand its sales, engineering, and customer support teams, while also developing a new compliance product aimed at supply chain management.

Founded by Tunde Ibidapo-Obe and Tomiwa Erinosho in 2023, Regfyl is already making waves in the business world by helping companies streamline customer onboarding, monitor transactions, and prevent fraud. The startup also assists financial institutions with regulatory reporting to bodies like Nigeria’s Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN). Some of the notable clients using its platform include Cowrywise, VFD Bank, Coronation, Piggyvest, and Budpay.

Investors are paying attention to Regfyl’s potential. Rally Cap led the funding round, supported by Techstars, DCG, Musha Ventures, and Africa Fintech Collective, along with key angel investors. The funds will help the company grow its presence and build its latest product.

Tunde Ibidapo-Obe, Regfyl’s CEO, believes trust is at the core of their mission. “Trust is the currency of the digital economy, and at Regfyl, we aim to be the operating system that supports this trust across Africa,” he said.

What Sets Regfyl Apart?

While many competitors focus on just one area of compliance, Regfyl offers businesses a complete package. Their platform covers everything from KYC onboarding to transaction monitoring and regulatory filing, making it a one-stop solution for companies trying to navigate the often complex world of compliance.

“We’ve essentially brought all the responsibilities of a compliance manager into one platform,” explained co-founder Tomiwa Erinosho. This unified approach is what makes Regfyl stand out in a crowded space that includes competitors like SmileID, Dojah, and Youverify.

In a short time, Regfyl has already attracted around 20 clients, charging them a yearly subscription fee of ₦2 million (about $1,220) for full access to its platform. They also charge per-use fees for customer screenings and monitoring.

With fraud being a major issue in Nigeria’s financial industry—$25.7 million was lost to fraud in the second quarter of 2024 alone—solutions like Regfyl’s are in high demand. Financial institutions are increasingly relying on companies like Regfyl to protect themselves from these risks.