Cheshire compliance technology company CoComply has secured £1.9m in investment to develop software that helps larger organisations understand and manage the risks associated with externally engaged workers. The funding was led by NPIF II-backed Mercia Equity Finance alongside Haatch and private investors.
CoComply is based at Alderley Park near Macclesfield and provides systems intended to help employers identify contractor relationships, record relevant information and assess compliance obligations. The business plans to use the financing to develop its technology and expand sales, marketing and delivery operations in Britain and overseas.
Participants in the round included Richard Law, former chief executive of identity-data company GBG, who is becoming chair, and other experienced technology and business investors. The announcement did not disclose a valuation or precisely how much equity was issued as part of the transaction.
Large businesses often obtain services through agencies, consultancies, contractors and other intermediaries. People carrying out work may therefore have very different contractual relationships from directly employed staff, while their details sit across purchasing, payroll, finance and HR systems.
That fragmentation can complicate questions about legal responsibility. An organisation may have clear records of the supplier it pays without an equally clear picture of which individuals undertake the work, the contractual terms that apply or whether the relevant approvals have been obtained.
CoComply aims to bring those records together and route decisions to the appropriate teams. The software can support a more consistent process, although automated classification cannot replace the legal assessment required when arrangements are complicated or facts differ from the labels used in contracts.
Off-payroll working requirements, often associated with IR35, are one example of obligations that may arise. Right-to-work checks and duties involving labour intermediaries present others. They operate under different legal tests and cannot be treated as one universal workforce compliance procedure.
The commercial opportunity for specialist software lies partly in reducing time spent reconciling fragmented information. A central system may help departments identify missing records and maintain an audit trail, while specialist advisers can review decisions that require interpretation of legislation or contractual facts.
Companies adopting such tools still need reliable underlying data and an understanding of their own responsibilities. A record entered inaccurately or a worker incorrectly classified may create legal or financial exposure despite the presence of a technology platform.
CoComply reported revenue growth of 240% during 2025 and said customer numbers increased 300% year on year. It expects further substantial revenue growth in 2026. Those figures are company-reported measures, and the announcement does not provide enough information to assess profitability or the precise size of the customer base.
Enterprise software can be costly to implement where customers operate several legacy systems, so growth will depend on integration capability, information security and the quality of continuing customer support. New investment provides resources for these activities but does not guarantee commercial outcomes.
The investment comes as businesses face increased expectations to explain how externally engaged workers are used and supervised. The commercial risk extends beyond the tax or employment classification of a single contract. Incomplete records can complicate internal auditing, supplier reviews and the ability to respond promptly when a regulator or customer requests evidence of compliance.
CoComply’s expansion will also depend on communicating clearly which issues the platform addresses and which need specialist judgement. Enterprise buyers may be reluctant to rely on software that promises automated certainty in legally complex circumstances. A system that identifies exceptions and documents decisions may provide greater practical value than one that treats every relationship as capable of being resolved through a simple rule.
The round illustrates investor interest in tools addressing complex operational obligations. CoComply will have to demonstrate that its platform improves visibility and decision-making while remaining responsive to the legal and practical differences between customers’ workforces.
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