Regtech firm CoComply raises £1.9m led by NPIF Mercia Equity Finance with Haatch
This article covers CoComply, a Regtech startup, which has raised £1.9m in a seed funding round led by NPIF - Mercia Equity Finance (managed by Mercia Ventures) with participation from Haatch and a group of technology and business investors. The funding aims to accelerate product development and growth as the platform helps mid-market and large organisations identify and manage external workforces and strengthen governance and compliance.
CoComply, a Regtech startup that helps organisations identify and manage their external workforce, has raised £1.9m in a seed funding round led by NPIF - Mercia Equity Finance (managed by Mercia Ventures) with participation from Haatch and a group of experienced technology and business investors. The funding will be used to accelerate product development and expand sales, marketing and delivery capabilities as the company targets broader UK and international growth.
Why it matters
Many organisations struggle to see workers who deliver services through contractors, agencies and suppliers. That hidden headcount creates gaps in governance and compliance across HR, procurement, finance and legal teams, and can expose companies to liabilities around worker classification, IR35, Right to Work checks and modern slavery obligations.
CoComply’s platform aims to provide a decision and governance layer that clarifies who is doing the work, how they are engaged and which checks are required. For mid-market and large organisations this addresses a practical problem that has grown as outsourcing and contingent labour have expanded.
Inside the product
CoComply combines automated detection with expert classification to find workers who are embedded inside supplier contracts, statements of work and service agreements. The platform identifies engagement routes, recommends appropriate checks and supports correct worker classification at the point work enters a business, rather than remediating issues later.
According to the company, revenues grew by 240% in 2025 and are forecast to increase a further 120%+ in 2026. Customer expansion is reported as up 300% year on year. The platform is already used by organisations ranging from mid-market firms to FTSE 100 companies, including Aston Martin, Take-Two, RS Group, Thredd, Quint Group, Dementia UK and the Royal Yachting Association. CoComply also received an Innovate UK Smart Grant in 2024.
Who are the investors?
The round was led by NPIF - Mercia Equity Finance, managed by Mercia Ventures as part of the Northern Powerhouse Investment Fund II. Haatch participated alongside a group of individual technology and business investors.
Notable participants include Richard Law, former CEO of GBG, who will join CoComply as chair; Seb Timpson, co-founder of financial data business With Intelligence (acquired by S&P Global for $1.8bn in November 2025); and Stephen Cann, CEO of Bollin Group, whose portfolio includes Mountain Equipment, Sprayway, Ronhill and Bridgedale.
Maurice Disasi, Investor at Mercia Ventures, said:
Organisations increasingly rely on outsourcing, yet many lack a clear understanding of who is delivering the work. What stood out to us was the scale of the problem and how poorly it is currently addressed. CoComply's ability to identify and classify hidden workers differentiates it from other solutions and positions the business well as regulation and governance requirements continue to increase.
Marwa Ebrahim, Associate at Haatch, said:
CoComply is tackling a significant and often overlooked challenge for businesses, with a platform that gives organisations much-needed visibility and control over their external workforce. We've been impressed by the team's first-hand understanding of the problem, the traction they've built and the opportunity to establish a new standard for workforce compliance. We're delighted to be backing Michael and the team as they scale the business in the UK and internationally.
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Founder perspective
Michael Cleavely, Founder & CEO, said:
Despite growing reliance on external workers in every industry, many businesses still struggle to answer a very basic question: how many people actually work for us, what are they doing and how are they engaged? That becomes a serious governance and compliance problem when responsibility is spread across business functions. Our mission is to provide the decision and governance layer across these teams, helping them choose the right engagement model and classify work correctly from the outset.
The bigger picture
The funding underscores continued interest in compliance-focused tooling as regulatory scrutiny and governance expectations increase across the UK and Europe. For Regtech investors, solutions that reduce downstream liability and provide cross-functional visibility are becoming more attractive as companies scale their use of contingent and supplier labour.
CoComply’s seed raise, backed by a mix of public-backed funds, venture investors and industry operators, positions the business to push further into mid-market and enterprise customers. Its progress will be one to watch as firms respond to tighter compliance regimes and seek clearer oversight of the external workforce.
They've invested in CoComply
Get to know these regtech investors
| Investors | Investment Focus | Startup Investments | Round Size | Connect |
|---|---|---|---|---|
 Mercia( ) Mercia is a venture capital firm focused on fuelling UK business ambitions throu... Manchester  | ||||
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 Haatch( ) This award-winning UK-based venture capital firm focuses on pre-seed and seed in... Stamford | ||||
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