Regfyl, a Nigerian startup specializing in digital identity verification and fraud detection, has successfully raised $1.1 million in pre-seed funding. This investment will be used to strengthen the company’s team and develop a new supply chain compliance product.
The funding round was led by Rally Cap, with participation from notable investors including Techstars, DCG, Musha Ventures, and Africa Fintech Collective, among others.
Founded in 2023 by Tunde Ibidapo-Obe and Tomiwa Erinosho, Regfyl assists businesses in various areas such as customer onboarding, transaction monitoring, and fraud prevention. The company also plays a crucial role in helping financial institutions comply with regulations by providing support for reporting and filing with bodies like Nigeria’s Securities and Exchange Commission (SEC) and the Central Bank.
Currently, Regfyl serves around 20 businesses, including well-known names like Cowrywise, VFD Bank, Coronation, Piggyvest, and Budpay. Tunde Ibidapo-Obe, CEO of Regfyl, emphasized the importance of trust in the digital economy, stating, “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 operates on a subscription model, charging an annual fee of ₦2 million (approximately $1,220) for full access to its platform. Additionally, the company implements a per-use fee for each customer that is screened and monitored.
The startup is part of a growing number of Nigerian companies focused on helping financial institutions detect and combat fraud. A recent report from the Financial Institutions Training Centre (FITC) highlighted that Nigerian banks lost approximately $25.7 million to fraud in the second quarter of 2024 alone.
In a competitive landscape, Regfyl stands out by offering a unified compliance solution. While other companies like SmileID, Dojah, and Youverify provide individual compliance services, Regfyl aims to cover all aspects of compliance. This includes Know Your Customer (KYC) onboarding, transaction monitoring, and regulatory filings, all within one comprehensive operating system.
Tomiwa Erinosho, co-founder of Regfyl, explained the startup’s approach by saying, “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.” This innovative approach aims to streamline compliance processes and make it easier for businesses to manage their regulatory obligations.
As the African tech ecosystem continues to evolve, events like TechCabal’s Moonshot are bringing together some of the continent’s most ambitious builders and thinkers in Lagos, Nigeria. These gatherings foster innovation and collaboration among startups, investors, and industry leaders.
Regfyl is positioned to make a significant impact in the fraud detection and compliance space in Nigeria. With its recent funding, the startup is set to enhance its offerings and expand its team, ultimately helping more businesses navigate the complex world of digital compliance and fraud prevention.
