CoComply, a UK RegTech scale-up focused on external workforce compliance, has secured £1.9m to speed up product development and expand its footprint across the UK and overseas markets, as businesses struggle to track who is actually doing their work.
NPIF – Mercia Equity Finance led the round. The fund is run by Mercia Ventures within the Northern Powerhouse Investment Fund II (NPIF II). UK venture capital firm Haatch, which combines capital with hands-on operational support, also backed the deal, alongside management and other investors.
Among them is former GBG CEO Richard Law, a seasoned technology investor whose holdings include Vypr, who takes up the role of chair. Seb Timpson, co-founder of With Intelligence, which S&P Global bought for $1.8bn in November 2025, also invested, as did Bollin Group CEO Stephen Cann, whose company owns Mountain Equipment, Sprayway, Ronhill and Bridgedale.
The capital will fund faster product development and a larger sales, marketing and delivery operation as CoComply works towards its goal of categorising and classifying the global workforce to ensure compliance everywhere.
CoComply’s backers are betting on a structural shift in employment. Organisations now depend on non-employees more heavily than at any point in the past ten years, yet oversight of these workers is typically fragmented between HR, procurement, finance and legal teams. Contractors, agency staff and service provider personnel often sit inside supplier agreements, statements of work and service contracts. This leaves companies unsure who is delivering work, on what terms, and which obligations they carry.
CoComply serves mid-market and large organisations, surfacing and managing external workers, including those concealed within supplier arrangements. Its AI-native platform pairs automation with specialist classification expertise and operates at the moment work enters an organisation.
It determines what work is required, the right engagement route, correct worker classification and the checks and approvals needed. The emphasis is on prevention, addressing risks such as IR35 and worker classification, Right to Work and modern slavery before they turn into liabilities.
The business reported 240% revenue growth in 2025 and expects growth above 120% in 2026, with customer expansion up 300% year-on-year. Clients range from mid-market firms to FTSE 100 companies and include Aston Martin, Take-Two, RS Group, Thredd, Quint Group, Dementia UK and the Royal Yachting Association. CoComply received an Innovate UK Smart Grant in 2024.
CoComply founder and CEO Michael Cleavely 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.”
Cleavely added, “We’ve brought together investors with first-hand experience of building substantial businesses who can help us make better decisions, challenge our thinking and introduce us to the right people as we grow. That experience matters enormously at this stage.”
Copyright © 2026 RegTech Analyst
Copyright © 2026 RegTech Analyst
