Wed Sep 25 08:09:47 UTC 2024: ## French RegTech Startup Dotfile Raises €6 Million to Revolutionize Compliance with AI
**Paris, France -** Dotfile, a French RegTech company specializing in AI-powered compliance solutions, has secured €6 million in funding, led by Seaya Ventures with participation from existing investors Serena and Hexa. This follows a €2.5 million seed round just over a year ago.
Dotfile’s platform uses AI to streamline customer onboarding and automate Anti-Money Laundering (AML) compliance for financial institutions. The company focuses on “Know Your Business” (KYB) verification, a notoriously complex and manual process, by aggregating vast amounts of data to provide a complete picture of a business within 10 seconds.
“More than $200 billion is invested in compliance every year, yet 2% of the world GDP is still laundered, fueling crime,” explains Dotfile CEO Vasco Alexandre. “AI can revolutionize the effectiveness of these policies, with massive positive impact on society.”
The company’s rapid growth has been fueled by increased regulatory scrutiny on Fintech and crypto companies, coupled with the financial services industry’s push for more efficient and modernized compliance procedures. Dotfile boasts over 50 clients across 10 countries, including private equity firms, banks, and leading fintechs like Spendesk, Younited Credit, Flowdesk, and Keyrock.
The new funding will support Dotfile’s research and development efforts and international expansion strategy. Following the opening of a London office in June, the company is eyeing other key financial centers for growth.
“Compliance costs banks up to 10% of their revenue, with one in four employees working in compliance,” notes Alexandre. “Existing systems are outdated, and with intensified competition from fintech, a transition is necessary, and generative AI is the tipping point.”
Aristotelis Xenofontos, Partner at Seaya Ventures, highlights the transformative potential of AI in KYC and KYB: “We have been closely watching this space for over a decade and found Dotfile to be the first truly innovative AI solution, combining deep understanding of the sector with stellar execution.”
Dotfile’s latest funding signifies a significant investment in the future of AI-driven compliance, promising to reshape the industry and enhance its effectiveness in the fight against financial crime.
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