Nigerian digital identity verification and fraud detection startup, Regfyl, has secured $1.1 million in pre-seed funding. The startup plans to use the funds to enhance its sales, engineering, and customer support teams while also developing a supply chain compliance product. This funding round was led by Rally Cap, with additional participation from Techstars, DCG, Musha Ventures, Africa Fintech Collective, and several strategic angel investors.
Strengthening Core Capabilities and Expanding Offerings
Since its launch in 2023 by co-founders Tunde Ibidapo-Obe and Tomiwa Erinosho, Regfyl has made significant strides in the digital compliance space. The startup provides businesses with digital identity verification tools, customer onboarding solutions, transaction monitoring, and fraud prevention services. With the new funding, Regfyl aims to bolster its internal teams to support its growing client base and to introduce a new product aimed at improving supply chain compliance, further expanding its portfolio of services.
Speaking on the company’s mission, Regfyl’s CEO, Tunde Ibidapo-Obe, said:
“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.”
Regfyl’s Comprehensive Compliance Solutions
Regfyl’s solutions are specifically designed to meet the needs of businesses and financial institutions. By offering tools for onboarding customers, monitoring transactions, and preventing fraud, Regfyl ensures that its clients comply with both local and international regulations. The startup’s unified compliance platform also assists financial institutions with regulatory reporting and filing requirements, working closely with financial regulators like the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
As of 2024, Regfyl serves around 20 businesses, including prominent names such as Cowrywise, VFD Bank, Coronation, Piggyvest, and Budpay. The platform is offered on a yearly subscription basis, costing ₦2 million ($1,220) for full access. Additionally, the company charges a per-use fee for screening and monitoring individual or business customers.
Addressing the Growing Fraud Challenge in Nigeria
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Regfyl’s value proposition is becoming increasingly important as Nigerian financial institutions continue to face significant challenges related to fraud. In its most recent report, the Financial Institutions Training Centre (FITC) revealed that Nigerian banks lost $25.7 million to fraud in Q2 2024 alone. As fraudsters become more sophisticated, there is a growing demand for robust fraud detection and compliance tools that can help institutions protect themselves and their customers.
By addressing this need, Regfyl is positioning itself as a key player in the Nigerian fintech ecosystem, helping businesses prevent fraud and meet regulatory requirements.
Competition and Market Differentiation
Regfyl operates in a competitive space alongside other Nigerian compliance and identity verification startups like SmileID, Dojah, and Youverify. However, Regfyl claims to differentiate itself by offering a comprehensive, all-in-one solution for compliance management.
According to co-founder Tomiwa Erinosho:
“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.”
While its competitors may focus on single aspects of compliance, such as Know Your Customer (KYC) verification, Regfyl aims to provide a full suite of services, from KYC onboarding to transaction monitoring and regulatory reporting. This holistic approach is designed to streamline the compliance process for businesses, helping them avoid costly errors and maintain regulatory compliance across multiple areas.
Looking Ahead: The Future of Regfyl
With its newly secured funding and expanded leadership team, Regfyl is poised to grow its influence in Nigeria and across Africa. The introduction of a supply chain compliance product could open new opportunities for the startup, allowing it to serve a broader range of industries beyond financial institutions.
As fraud continues to be a significant concern for businesses in Nigeria, Regfyl’s comprehensive compliance solutions will likely become even more valuable. By providing a unified platform that simplifies the complexities of regulatory compliance, Regfyl is not only helping businesses safeguard their operations but also contributing to the overall security of Nigeria’s digital economy.