CoComply, a UK RegTech scale-up focused on external workforce compliance, has secured £1.9m to speed up product development and expand its presence both at home and abroad.
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 pairs capital with hands-on support for founders, also took part, alongside management and other investors.
Those backers include Richard Law, the former CEO of GBG and a technology investor with a portfolio that features Vypr, who will take on the role of chair. They also include Seb Timpson, co-founder of With Intelligence, a financial data and intelligence firm that S&P Global bought for $1.8bn in November 2025, and Stephen Cann, CEO of Bollin Group, owner of brands such as Mountain Equipment, Sprayway, Ronhill and Bridgedale.
The raise comes as reliance on people outside the payroll keeps rising. Oversight of these workers is often split between HR, procurement, finance and legal teams. Many contractors, agency staff and service provider personnel sit inside supplier agreements, statements of work and service contracts. As a result, organisations can lose track of who is actually doing the work, on what terms, and which obligations follow.
CoComply serves mid-market and large organisations. Its platform surfaces external workers, including those concealed within supplier contracts, and maps how each person is engaged. It then sets out which compliance checks apply. The AI-native system pairs automation with specialist classification expertise and operates at the moment work first arrives in a business.
From there, it helps teams define the work required, choose a suitable engagement route, classify workers accurately and settle the approvals needed. The emphasis is on prevention. The goal is to catch exposure around worker classification and IR35, Right to Work and modern slavery before it becomes a liability.
Commercial traction has been strong. Revenue rose 240% in 2025, and the company expects growth of more than 120% in 2026.
Customer expansion has tripled year on year. Clients range from mid-market firms to FTSE 100 groups, 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.
The new capital will fund product work and a larger sales, marketing and delivery operation. This supports the company’s long-term aim of categorising and classifying the global workforce so that compliance holds everywhere.
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.”
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