Regfyl, a Nigerian startup specializing in fraud detection and digital identity verification, has secured $1.1 million in pre-seed funding. The funds will be used to grow its workforce and develop a new compliance product designed to address challenges in supply chain management. Led by venture capital firm Rally Cap, the funding round saw participation from Techstars, DCG, Musha Ventures, Africa Fintech Collective, and several angel investors. The investment will help Regfyl enhance its sales, engineering, and customer support teams as it continues to grow in Nigeria’s competitive fintech landscape. Founded in 2023 by Tunde Ibidapo-Obe and Tomiwa Erinosho, Regfyl offers businesses solutions to verify identities, onboard customers, monitor transactions, and prevent fraud. Financial institutions, in particular, benefit from Regfyl’s tools for regulatory reporting, which help them comply with requirements set by regulators like the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). The company’s clientele includes well-known firms such as Cowrywise, Piggyvest, Coronation, VFD Bank, and Budpay. “Regfyl is building the backbone for trust in Africa’s digital economy,” said CEO Ibidapo-Obe. “We want to be the platform businesses rely on for compliance and fraud detection.” The startup offers its services on a subscription basis, with businesses paying ₦2 million ($1,220) per year for full access to the platform. In addition, Regfyl charges per screening for each individual or business customer monitored on behalf of its clients. Fraud remains a pressing concern in Nigeria's financial sector. In the second quarter of 2024 alone, Nigerian banks lost $25.7 million to fraud, according to a report by the Financial Institutions Training Centre (FITC). This has driven the demand for solutions like those provided by Regfyl. The company is part of a growing network of firms, including competitors like SmileID, Dojah, and Youverify, that offer KYC (know-your-customer) compliance services. However, Regfyl differentiates itself by providing an all-in-one compliance platform, managing everything from KYC onboarding to transaction monitoring and regulatory filings. Co-founder Erinosho highlighted this integrated approach, noting that Regfyl simplifies the compliance manager's role by consolidating multiple functions into a single system. “Our platform streamlines the entire compliance process, making it easier for businesses to stay on top of regulations while preventing fraud,” he said. With its new funding and a broad range of services, Regfyl is positioning itself to play a significant role in safeguarding Nigeria’s growing fintech sector, where the stakes are high and the risks of fraud continue to rise.
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