Regfyl, a pioneering Nigerian firm specializing in digital identity verification and fraud detection solutions for businesses, has successfully secured $1.1 million in pre-seed investment. The startup plans to allocate this funding towards enhancing its sales, engineering, and customer support teams, as well as developing a product focused on supply chain compliance.
The investment round was spearheaded by Rally Cap, with significant contributions from Techstars, DCG, Musha Ventures, Africa Fintech Collective, and several key angel investors.
Founded in 2023 by Tunde Ibidapo-Obe and Tomiwa Erinosho, Regfyl is dedicated to facilitating seamless customer and business onboarding processes, monitoring transactions, and preventing fraud. Additionally, the company offers crucial support to financial institutions in managing regulatory reporting and filings with key financial authorities, including Nigeria’s Securities and Exchange Commission (SEC) and the Central Bank. Presently, Regfyl serves around 20 businesses, with notable clients such as 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 businesses ₦2 million ($1,220) annually for complete access to its platform, in addition to a per-use fee for screening and monitoring each individual or business customer.
The company is among a burgeoning group of Nigerian enterprises focused on equipping financial institutions with the tools necessary to detect and combat fraud. According to the Financial Institutions Training Centre (FITC), Nigerian banks incurred losses amounting to $25.7 million due to fraud in the second quarter of 2024 alone.
Regfyl finds itself in competition with other service providers like SmileID, Dojah, and Youverify, which also offer Know Your Customer (KYC) compliance services to businesses. However, Regfyl sets itself apart by offering a comprehensive compliance solution that addresses all aspects of business compliance needs, from KYC onboarding and transaction monitoring to regulatory filing.
Tomiwa Erinosho, co-founder of Regfyl, highlighted the company’s holistic approach, stating;
What we have done is to examine the role of the compliance manager and have essentially consolidated all of its functions into one operating system.
