A Nigerian company specializing in digital identity verification and fraud detection tools for businesses has secured $1.1 million in pre-seed funding. The funding will be utilized to enhance its sales, engineering, and customer support teams, as well as to develop a supply chain compliance product.
The funding round was led by Rally Cap, with additional investments from Techstars, DCG, Musha Ventures, Africa Fintech Collective, and other strategic angels.
Established in 2023 by two individuals, the company assists businesses in customer and business onboarding, transaction monitoring, and fraud prevention. It also aids financial institutions in regulatory reporting with entities like Nigeria’s Securities and Exchange Commission (SEC) and Central Bank. Regfyl presently serves approximately 20 businesses, with clients including Cowrywise, VFD Bank, Coronation, Piggyvest, and Budpay.
According to the CEO of the company, “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.”
The company offers a yearly subscription fee of ₦2 million ($1,220) for full platform access, in addition to a per-use fee for each individual or business customer screened and monitored.
Regfyl is among the Nigerian companies aiding financial institutions in identifying and combating fraud. In a recent report by the Financial Institutions Training Centre (FITC), it was disclosed that Nigerian banks lost $25.7 million to fraud in Q2 2024.
While competing with other similar businesses like SmileID, Dojah, and Youverify that provide KYC compliance services to businesses, Regfyl distinguishes itself by offering a comprehensive compliance solution covering various aspects from KYC onboarding to transaction monitoring and regulatory filing.
One of the founders explained, “What we have done is to look at what the job of the compliance manager is and we have essentially brought all of it in one operating system.”
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