CoComply, a UK regtech scale-up, has raised £1.9 million to accelerate development of its external workforce compliance platform and expand in the UK and internationally. The funding round was led by NPIF - Mercia Equity Finance, managed by Mercia Ventures as part of the Northern Powerhouse Investment Fund II, alongside UK venture capital firm Haatch. The company helps mid-market and large organizations identify and manage hidden external workers, a growing governance challenge that spans HR, procurement, finance, and legal teams.
The Hidden Workforce Challenge
Many companies rely on external workers embedded within supplier agreements, statements of work, and service contracts, making them invisible to standard compliance systems. Responsibility for this external workforce is often scattered across HR, procurement, finance, and legal departments, leaving no single function with a complete picture. This hidden headcount creates serious governance risks, including misclassification, IR35 liability, Right to Work failures, and modern slavery concerns.
How CoComply Works
CoComply's AI-native platform combines automation with specialist classification expertise to uncover who is delivering work for an organization. It helps businesses establish what work is needed, choose the appropriate engagement route, and determine which compliance checks and approvals apply. Founded by serial entrepreneur Michael Cleavely after he experienced this problem firsthand, CoComply describes its mission as providing a decision and governance layer across business functions so organizations can engage external workers with confidence.
Investor Backing
The investment was led by NPIF - Mercia Equity Finance, which is managed by Mercia Ventures as part of the Northern Powerhouse Investment Fund II, and by Haatch. Private investors include Richard Law, former CEO of GBG; Seb Timpson, co-founder of With Intelligence, which S&P Global acquired for US$1.8 billion; and Stephen Cann, CEO of Bollin Group. Epiphany Capital Managing Partner Tim Dempsey provided fundraising advice on the round.
Growth and Customer Traction
CoComply reported revenue growth of 240% in 2025 and forecasts growth of more than 120% in 2026, while customer expansion rose 300% year on year. Its platform is used by organizations ranging from mid-market businesses to FTSE 100 companies, including Aston Martin, Take-Two, RS Group, Thredd, Quint Group, Dementia UK, and the Royal Yachting Association. The company also received an Innovate UK Smart Grant in 2024.
Regulatory Tailwinds
The company's growth follows regulatory changes that have widened compliance obligations for businesses. On October 1, 2025, the UK's Right to Work scheme expanded beyond employees to cover individual subcontractors and some people engaged through online matching services. Separately, IR35 off-payroll working rules have made medium and large private-sector clients responsible for determining whether contractors should be taxed like employees, and HMRC estimated extra revenue of about £4.2 billion by March 2023.
Use of Funds and Strategic Ambition
The new capital will be used to accelerate product development and to expand sales, marketing, and delivery capability in the UK and abroad. CoComply aims to establish a new standard for workforce compliance by connecting fragmented data across procurement, HR, and finance systems. The company argues that a dedicated governance layer is needed because traditional compliance tools fail to identify workers hidden inside supplier contracts.
CoComply's £1.9 million round positions the company to capitalize on rising regulatory pressure and growing reliance on external labor. By combining automation with human expertise, the platform gives organizations visibility and control over a largely unmanaged workforce segment. The investment from Mercia Ventures and Haatch underscores confidence in the team's first-hand understanding of the problem and its ability to scale internationally.