Regfyl, a rising Nigerian fraud detection and digital identity verification startup, has successfully raised $1.1 million in pre-seed funding to accelerate its growth and enhance its product offerings. This fresh injection of capital will enable Regfyl to strengthen its sales, engineering, and customer support teams while also developing an innovative supply chain compliance solution.
The funding round was spearheaded by Rally Cap, with additional contributions from notable investors such as Techstars, DCG, Musha Ventures, Africa Fintech Collective, and several strategic angel investors. This impressive lineup of backers highlights the growing confidence in Regfyl’s potential to transform the financial compliance landscape in Africa.
Founded in 2023 by Tunde Ibidapo-Obe and Tomiwa Erinosho, Regfyl is focused on helping businesses streamline their compliance processes, including customer onboarding, transaction monitoring, and fraud detection. The company’s platform is already trusted by over 20 businesses, including prominent clients like Cowrywise, VFD Bank, Coronation, Piggyvest, and Budpay.
“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 CEO Tunde Ibidapo-Obe.
In a market crowded with competitors like SmileID, Dojah, and Youverify, Regfyl sets itself apart by offering a comprehensive compliance solution. While other companies provide single compliance services, Regfyl’s platform unifies the entire compliance process — from Know Your Customer (KYC) onboarding to transaction monitoring and regulatory reporting to authorities like the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
“What we have done is to look at what the job of the compliance manager is, and we have essentially brought all of it into one operating system,” co-founder Tomiwa Erinosho explained.
Regfyl’s mission is more critical than ever, as fraud continues to plague Nigeria’s financial institutions. According to a recent report from the Financial Institutions Training Centre (FITC), Nigerian banks lost a staggering $25.7 million to fraud in Q2 2024 alone. With its cutting-edge fraud prevention tools and compliance services, Regfyl aims to help businesses and financial institutions reduce these losses and build a safer, more transparent digital economy.
Regfyl operates on a subscription model, charging businesses ₦2 million ($1,220) annually for full access to its platform. Additionally, the company offers a pay-per-use fee for each individual or business customer screened, ensuring that businesses can scale their compliance efforts without breaking the bank.
With the new funding, Regfyl is well-positioned to expand its reach across Nigeria and beyond, potentially becoming a leading player in Africa’s fast-growing fintech sector. As the demand for fraud prevention and regulatory compliance tools skyrockets, Regfyl’s unified platform offers a one-stop solution for businesses looking to safeguard their operations and build trust with customers.
