In a bid to address the growing demand for robust compliance solutions in Nigeria’s digital economy, Regfyl, a Nigerian startup focused on digital identity verification and fraud detection, has secured $1.1 million in pre-seed funding. The funding, led by Rally Cap with participation from Techstars, DCG, Musha Ventures, and Africa Fintech Collective, is set to bolster the company’s sales, engineering, and customer support teams, as well as fuel the development of a supply chain compliance product.
Founded in 2023 by lawyer-turned-entrepreneur Babatunde Ibidapo-Obe and his co-founder Tomiwa Erinosho, Regfyl aims to simplify the often cumbersome process of regulatory compliance for financial institutions and businesses alike. The startup’s platform provides tools for customer and business onboarding, transaction monitoring, and fraud prevention. It also facilitates regulatory reporting for institutions working with bodies like Nigeria’s Securities and Exchange Commission (SEC) and the Central Bank of Nigeria.
This expansion comes on the heels of Ibidapo-Obe’s earlier success with LawPadi, a legal tech platform offering legal advice and regulatory guidance. With Regfyl, Ibidapo-Obe is taking his mission of empowering businesses through technology a step further, focusing on the more pressing challenges of trust and security in financial operations. “Trust is the currency of the digital economy, and at Regfyl, we are committed to being the operating system that underpins this trust across the continent,” said Ibidapo-Obe.
Regfyl has already secured a notable client roster, including digital-first businesses like Cowrywise, Piggyvest, VFD Bank, and Budpay. The company currently serves around 20 businesses and charges an annual subscription fee of ₦2 million ($1,220) for full platform access, alongside per-use fees for screening and monitoring customers.
As Nigeria’s financial institutions grapple with increasing fraud, Regfyl’s unified compliance solution is gaining traction. The Financial Institutions Training Centre (FITC) reported that Nigerian banks lost $25.7 million to fraud in Q2 2024 alone. Regfyl aims to provide a comprehensive solution, setting it apart from competitors like SmileID, Dojah, and Youverify, which focus on individual compliance services such as Know Your Customer (KYC) checks.
“What we have done is to look at the job of a compliance manager and essentially bring all of it into one operating system,” Erinosho explained, emphasizing the platform’s ability to streamline KYC onboarding, transaction monitoring, and regulatory filings into a single interface.
In a highly competitive market, where digital security is increasingly a non-negotiable part of business, Regfyl’s growth signals a broader trend toward integrated compliance solutions. With its recent funding and expanding client base, Regfyl is positioning itself to be a key player in safeguarding Nigeria’s financial sector from fraud and ensuring businesses remain compliant in an increasingly complex regulatory landscape.
As the company scales, it will not only address local challenges but could potentially become a significant force across the continent, leveraging its technology to build trust in Africa’s evolving digital economies.