Regfyl, a Nigerian fraud detection company, raises $1.1million to expand team and build new compliance product

Regfyl, a Nigerian company that provides digital identity verification and fraud detection tools to businesses, has raised $1.1 million in pre-seed funding. The startup will use the funding to strengthen its sales, engineering and customer support team and build a supply chain compliance product. 

Rally Cap led the funding round. Techstars, DCG, Musha Ventures, Africa Fintech Collective and other strategic angels also invested. 

Launched in 2023 by Tunde Ibidapo-Obe and Tomiwa Erinosho, Regfyl helps businesses with customer and business onboarding, transaction monitoring, and fraud prevention. Regfyl also helps financial institutions with regulatory reporting/filing with financial regulators like Nigeria’s Securities and Exchange Commission (SEC) and Central Bank. The company currently serves about 20 businesses and counts Cowrywise. VFD Bank, Coronation, Piggyvest, and Budpay are among its clients. 

“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,” said Tunde Ibidapo-Obe, CEO of Regfyl.

The startup charges a yearly subscription fee of ₦2 million ($1,220)for full access to its platform. It also charges a per-use fee for each individual or business customer screened and monitored.

Regfyl is part of a growing list of Nigerian companies helping financial institutions to detect and fight fraud. In its recently released Fraud and Forgeries Report, the Financial Institutions Training Centre (FITC) reported that Nigerian banks lost $25.7 million to fraud in Q2 2024. 

It competes with similar businesses like SmileID, Dojah, Youverify that offer KYC compliance services to businesses. While these competitors offer just one compliance service to financial institutions, Regfyl claims to offer a unified compliance solution that helps businesses handle every section of their compliance, from KYC onboarding to transaction monitoring and regulatory filing. 

“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,” said Erinosho.

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