RegTech scale-up CoComply has raised £1.9m to accelerate development of its external workforce compliance platform and drive growth in the UK and internationally.
Unlike traditional compliance tools, CoComply helps mid-market and large organisations uncover and manage their external workforce, including workers hidden within supplier contracts. It identifies how people are engaged, determines which compliance checks are needed and combines technology with expert classification to help organisations reduce risk and engage workers with confidence.
The investment round was led by NPIF – Mercia Equity Finance, which is managed by Mercia Ventures as part of the Northern Powerhouse Investment Fund II (NPIF II), the UK venture capital firm Haatch, and private investors.
These include Richard Law, former CEO of GBG and an experienced technology investor whose portfolio includes Vypr who becomes chair; Seb Timpson, co-founder of financial data and intelligence business With Intelligence, which was acquired by S&P Global for $1.8bn; and Stephen Cann, CEO of Bollin Group.
The world of work has changed beyond recognition in the last decade. Companies are relying on people they do not directly employ more than ever before, yet responsibility for managing this external workforce is often scattered across HR, procurement, finance and legal.
While businesses know their own employees, hidden headcount sits in work being delivered through contractors, agencies and service providers. These workers are buried within supplier agreements, statements of work and service contracts and can leave businesses without a clear picture of who is delivering work, how they are engaged or which compliance obligations apply.
CoComply’s ambition is to give organisations the confidence to be certain who is working for them. Its AI-native platform combines automation with specialist expertise to help organisations establish what work is needed, identify the appropriate engagement route, classify workers correctly and determine necessary checks and approvals. It helps businesses identify and manage risks including worker classification and IR35, Right to Work and modern slavery.
CoComply was founded by serial entrepreneur Michael Cleavely after he experienced the problem first-hand. While running an IT consultancy following the 2021 IR35 reforms, a large enterprise client asked for help understanding its contractor population. The resulting exercise involved manually analysing thousands of lines of supplier data. Cleavely had previously founded workforce consultancy Triple Seven, which he grew and sold to Experis Manpower in 2013.
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.”
CoComply’s revenues grew by 240% in 2025 and are forecast to grow by more than 120% in 2026, while customer expansion has grown 300% year-on-year. The platform is already used by organisations 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. CoComply was also awarded an Innovate UK Smart Grant in 2024.
The funding will be used to accelerate product development and build the business’s sales, marketing and delivery capability.
Maurice Disasi of 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.”
Tim Dempsey, Managing Partner of Epiphany Capital, provided fundraising advice on the investment round.
The £660m Northern Powerhouse Investment Fund II (NPIF II) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of NPIF II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
NPIF II – Mercia Equity Finance, which is part of NPIF II, can provide equity investments throughout the North but has a primary focus on the Yorkshire and Humber regions of City of Kingston upon Hull and East Riding of Yorkshire, North Yorkshire, South Yorkshire and West Yorkshire.