A Step Forward for Compliance Solutions
Nigerian startup Regfyl has raised $1.1 million in pre-seed funding to enhance its platform, which aims to simplify compliance processes for businesses across various sectors. This latest round of funding, led by Rally Cap with participation from Techstars, DCG, Musha Ventures, Africa Fintech Collective, and a group of angel investors, will enable Regfyl to scale its operations and workforce, while also expanding its product offerings.
The startup plans to use the funds to strengthen its teams in sales, engineering, and customer support, as well as to develop a supply chain compliance tool that will further extend its platform’s capabilities.
Building a Comprehensive Compliance Platform
Founded in 2023 by Tunde Ibidapo-Obe and Tomiwa Erinosho, Regfyl has quickly gained traction by offering a unified solution to help businesses manage their compliance needs. The platform provides tools for customer onboarding, transaction monitoring, and regulatory reporting, streamlining the compliance process across various industries.
Financial institutions, in particular, have found value in Regfyl’s offering, which simplifies reporting and filing requirements with key regulatory bodies like the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
“We recognized that compliance was a major pain point for businesses, particularly in highly regulated industries like finance. Regfyl was designed to make this process easier,” said co-founder Tunde Ibidapo-Obe.
Scaling Operations: Expanding the Workforce and Product Offerings
The pre-seed funding will be instrumental in scaling Regfyl’s workforce, allowing the company to invest in sales, engineering, and customer support to meet growing demand. This will enhance Regfyl’s ability to support its expanding client base and ensure the continued development of its platform.
Additionally, the company plans to introduce a supply chain compliance tool, expanding its suite of services beyond financial institutions to other sectors like gaming, e-commerce, and logistics. This move is part of Regfyl’s broader goal of becoming the leading compliance solution provider across Africa.
A Unique Approach to Compliance: What Sets Regfyl Apart
While Nigeria’s fintech landscape is highly competitive, Regfyl distinguishes itself through its all-in-one approach to compliance. Unlike competitors such as SmileID, Dojah, and Youverify, which focus on specific aspects like Know Your Customer (KYC), Regfyl offers a comprehensive platform that covers the entire compliance journey—from onboarding and monitoring to regulatory filing.
This unified solution is designed to meet the increasing demand for efficiency, security, and trust in the financial services industry. By integrating various aspects of compliance into one platform, Regfyl helps businesses streamline operations and reduce the complexities of regulatory processes.
Pricing Model and Client Base
Regfyl operates on a subscription-based pricing model, charging an annual fee of ₦2 million (approximately $1,220), with additional charges based on the number of customers a business screens or monitors. This pricing model offers flexibility for businesses of different sizes, ensuring that both large institutions and smaller firms can access the platform’s features.
The company’s growing client base includes prominent names like Cowrywise, VFD Bank, Coronation, Piggyvest, and Budpay. Currently, over 20 businesses are utilizing Regfyl’s services, demonstrating the platform’s increasing adoption in Nigeria’s financial sector.
Tackling Financial Fraud with Integrated Solutions
One of Regfyl’s key missions is to combat the rising levels of financial fraud in Nigeria. In Q2 2024 alone, Nigerian banks reported losses of $25.7 million due to fraudulent activities. Regfyl’s platform is equipped with fraud detection and security features that help financial institutions mitigate these risks, offering an integrated compliance solution that enhances trust and security in the financial ecosystem.
By combining regulatory compliance with fraud detection, Regfyl enables businesses to protect themselves against potential threats while maintaining compliance with industry regulations.
Expanding Beyond Financial Institutions
While Regfyl initially focused on serving financial institutions, the startup has its sights set on expanding into new industries, including gaming, e-commerce, and supply chain management. This strategic diversification will allow Regfyl to offer its compliance solutions to a wider range of businesses, positioning itself as a leader in compliance across multiple sectors.
The company aims to become the “operating system for trust” across Africa, helping businesses in various industries navigate complex regulatory landscapes while building trust with their customers.
Leadership’s Vision: Building Trust in the Digital Economy
Co-founder Tunde Ibidapo-Obe emphasizes that trust is central to Regfyl’s mission. As digital transformation accelerates across Africa, businesses are increasingly relying on technology to manage their operations. However, the success of this digital shift depends on maintaining trust with customers, regulators, and partners.
“Trust is the currency of the digital economy, and we are focused on being the operating system that underpins this trust across the continent,” Ibidapo-Obe stated. With this vision in mind, Regfyl is committed to providing the tools businesses need to operate with confidence and transparency in an increasingly digital world.
