Paris, September 23rd, 2024
Today, Dotfile, a French RegTech company created in 2021 within the startup studio Hexa (fka eFounders), announces a €6M fundraising, just over a year after a first round of €2.5M. This new round is led by Seaya Ventures, with the participation of existing investors Serena Capital and Hexa.
Helping fintech unicorns to turn compliance into a competitive advantage
Dotfile’s compliance one-stop shop platform uses AI to help financial institutions automate customer onboarding and comply with Anti-Money Laundering regulations. The company is a leader in business verification, a process also known as “Know-your-Business” (KYB), which is notoriously manual, complex, and expensive to run. It does so by aggregating dozens of different data sources to paint a complete picture of a business anywhere in the world in 10 seconds.
“More than $200B is invested in compliance every year, yet 2% of the world GDP is still going through the money-laundering rinse cycle, which is fuelling crime. AI could change how effective those policies are and the positive impact for our societies could be massive”. Dotfile’s CEO, Vasco Alexandre, explains.
Fintech and crypto companies are under increased scrutiny from regulators while the financial services industry is looking at AI and automation to be more efficient and modernize compliance procedures. These factors have accelerated Dotfile’s growth and sparked investors’ interest.
Dotfile counts more than 50 customers across 10 countries, including private equity firms, banks, and fintech leaders such as Spendesk, Younited Credit, Flowdesk, and Keyrock.
A first office in the UK paving the way for broader international expansion
This fundraising will fuel the company’s R&D efforts and international expansion strategy. After opening an office in London in June, the company eyes other key financial centers for expansion.
“Compliance is costing banks up to 10% of their revenue, 1 out of 4 employees work in a compliance-related position and existing systems are sometimes more than a decade old. With the competition from fintech intensifying, a transition is bound to happen and generative AI is the tipping point.” Vasco Alexandre suggests.
Aristotelis Xenofontos, Partner at Seaya added «We have been watching the KYC (Know Your Customer) and KYB (Know Your Business) space very closely for over a decade, both from an operational and investment perspective. We have identified this area as one where AI can be transformational meeting client needs. After evaluating more than 20 products and teams in the market, we found in Dotfile the first truly innovative AI solution, combining an unusual deep understanding of the KYB/KYC sector with stellar execution.»
About Dotfile
Dotfile was founded in 2021 by Vasco Alexandre, Titouan Benoit, and support from the startup studio Hexa (fka eFounders). Dotfile’s mission is to build the trust infrastructure of business relationships. Dotfile’s unique all-in-one Compliance platform allows regulated business to verify their customers or partners faster, reduce risk, and protect themselves from regulatory risks and fraud.
More information: dotfile.com
About Seaya Ventures
Seaya Ventures is a leading European Venture Capital fund that invests in early-stage disruptive technological companies with global ambitions.
Seaya Ventures is part of Seaya, a firm founded in 2013 that manages over €650 million across five funds, with offices in Madrid, Barcelona, London and Mexico City. Seaya accelerates the growth of startups by leveraging the founder’s strategic vision, providing them with Seaya’s global platform, its extensive network of founders, investors and multinational corporations, as well as all its experience in the global expansion of companies such as Glovo, Cabify, Wallbox (NYSE:WBX), Spotahome, Clarity AI, Clicars, Alma and RatedPower.
Learn more at seaya.vc
