Paris-based Dotfile bags €6M to help businesses with compliance landscape with AI

Paris-based Dotfile, a RegTech company, announced on Tuesday that it has secured €6M in the latest fundraising round.

This new round is led by Seaya Ventures, with the participation of existing investors Serena and Hexa.

This new investment comes over a year after the company’s first round of €2.5M.

The French company will use the funds to accelerate its R&D efforts and international expansion strategy. After opening an office in London in June, the company eyes other key financial centres for expansion.

What does Dotfile solve?

Typically, compliance can be a costly, time-consuming, and complex process—especially when it comes to KYB verification. Here’s where the French company comes into play!

Vasco Alexandre, CEO, explains, “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 fueling crime. AI could change how effective those policies are, and the positive impact on our societies could be massive.”

Dotfile: Making compliance effortless for financial institutions

Founded in 2021 by Vasco Alexandre, Titouan Benoit, and support from the startup studio Hexa (fka eFounders), Dotfile is founded on a mission to make compliance effortless for financial institutions and other regulated businesses.

The company’s all-in-one Compliance platform allows regulated business to verify their customers or partners faster, reduce risk, and protect themselves from regulatory risks and fraud.

The company does it by leveraging AI to help financial institutions automate customer onboarding and comply with Anti-Money Laundering regulations.

The process of business verification, also known as “Know Your Business” (KYB), is typically manual, complex, and costly.

“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,” Vasco Alexandre suggests.

The company gathers data from various sources to create a comprehensive business profile from anywhere in the world in just 10 seconds.

Dotfile counts more than 50 customers across 10 countries, including private equity firms, banks, and fintech leaders such as Spendesk, Younited Credit, Flowdesk, and Keyrock.

The investor

Seaya Ventures is a European Venture Capital fund that invests in early-stage disruptive technological companies with global ambitions.

Seaya Ventures, part of Seaya, manages over €650M across five funds, with offices in Madrid, Barcelona, London, and Mexico City. 

Aristotelis Xenofontos, Partner at Seaya adds, “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 in 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 unusually deep understanding of the KYB/KYC sector with stellar execution.”