Dotfile, a French RegTech company, has announced a successful €6M funding round to accelerate compliance automation using AI. The round was led by Seaya Ventures, with participation from existing investors Serena and Hexa. This latest investment comes just over a year after the startup raised €2.5M in its first funding round.
Transforming compliance automation with AI in a competitive fintech landscape
In today’s fast-paced financial world, compliance has become a major challenge for companies, and Dotfile is addressing this issue with a game-changing solution. The company’s AI-powered compliance automation platform helps financial institutions streamline their customer onboarding and comply with complex Anti-Money Laundering (AML) regulations. It is particularly focused on business verification, or Know Your Business (KYB), a process that is traditionally manual, time-consuming, and expensive.
For many fintech unicorns, ensuring compliance with ever-evolving regulations is not only a necessity but also a potential competitive advantage. Dotfile’s platform aggregates multiple data sources to provide a comprehensive view of any business in just 10 seconds, allowing institutions to assess risk quickly and accurately.
“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,” explains Dotfile CEO Vasco Alexandre.
With increased regulatory scrutiny on fintech and crypto firms, the need for automated compliance solutions has never been more urgent. Dotfile’s innovative approach has captured the attention of over fifty customers across ten countries, including high-profile names such as Spendesk, Younited Credit, Flowdesk, and Keyrock.
Expanding internationally and investing in R&D
Following this latest round of funding, Dotfile plans to focus on research and development to further enhance its AI-driven platform while also expanding its international footprint. The company opened its first UK office in London in June, marking the beginning of a broader expansion into key financial hubs.
“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,” said Alexandre, highlighting the urgency for financial institutions to modernise their compliance procedures.
Aristotelis Xenofontos, Partner at Seaya, echoed these sentiments: “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.”
Fuelled by innovation: what’s next for Dotfile?
Dotfile’s mission is to build a trust infrastructure for business relationships, helping companies reduce risk and stay ahead of regulatory requirements. Founded in 2021 by Vasco Alexandre and Titouan Benoit, with support from startup studio Hexa (formerly eFounders), Dotfile has quickly emerged as a leader in the RegTech space.
By using AI to automate compliance, Dotfile is empowering financial institutions to operate more efficiently and securely in a rapidly changing regulatory environment. With this new €6M investment, the company is poised to further enhance its platform, expand into new markets, and continue to revolutionise compliance in the fintech industry.
