UK-based RegTech scale-up CoComply has raised £1.9 million to improve its workforce compliance platform and expand across the UK and international markets.
Unlike traditional compliance tools, CoComply helps medium-sized and large businesses identify and manage external workers, including those hired through contractors, agencies and supplier agreements. Its platform helps companies understand how workers are employed, identify the checks they need to complete and reduce compliance risks with the support of technology and expert guidance.
The funding round was led by NPIF – Mercia Equity Finance, managed by Mercia Ventures through the Northern Powerhouse Investment Fund II (NPIF II), and Haatch, a UK venture capital firm that supports growing businesses. The company’s management team and other investors also participated.
Other investors include Richard Law, former CEO of GBG and an experienced technology investor, who will become CoComply’s chair. Seb Timpson, co-founder of financial data and intelligence company With Intelligence, which was acquired by S&P Global for $1.8 billion in November 2025, also invested. Stephen Cann, CEO of Bollin Group, whose brands include Mountain Equipment, Sprayway, Ronhill and Bridgedale, was another investor.
The way businesses hire and manage workers has changed significantly over the past decade. Many companies now depend on people they do not employ directly, but responsibility for managing these workers is often spread across different departments, including HR, procurement, finance and legal.
These external workers are often hired through contractors, agencies and service providers. Their details may be buried in supplier agreements and service contracts, making it difficult for businesses to know exactly who is doing the work, how they are engaged and which compliance rules apply.
CoComply aims to help businesses gain a clearer picture of their external workforce. Its AI-powered platform combines automated processes with expert support to help companies identify their workforce needs, choose the right way to engage workers, classify them correctly and complete the necessary checks and approvals.
The platform focuses on identifying potential problems early, before they become costly issues. It helps businesses manage risks related to worker classification, IR35 tax rules, Right to Work checks and modern slavery, allowing them to meet their compliance responsibilities more effectively.
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.”
Michael Cleavely founded CoComply after facing workforce classification challenges himself. While running an IT consultancy following the 2021 IR35 reforms, a large business asked him to help identify and assess its contractors. The task involved manually reviewing thousands of lines of supplier data to find out who was working for the company and whether they met compliance requirements.
This experience revealed a common problem for large organisations and inspired Cleavely to start CoComply. He had previously founded workforce consultancy Triple Seven, which he grew before selling it to Experis Manpower in 2013.
