Tallinn-based regtech company Instarc has secured a €1.25 million strategic investment to support the commercial rollout of its cloud-native compliance platform in South Africa. The investment was led by HFO Investments, with Athena Capital and Option 3 Capital advising on the transaction.

Instarc develops compliance infrastructure for regulated financial institutions and other accountable institutions. Its platform is initially focused on South Africa, where financial and other regulated businesses are subject to customer identification, due diligence and reporting requirements under the Financial Intelligence Centre Act (FICA).

The company's cloud-native platform supports digital customer onboarding, identity and ownership verification, customer due diligence, compliance checks, document management, case workflows, regulatory reporting and audit records. It also provides APIs for integrating these functions with institutions' existing systems.

Instarc has designed the technology to integrate compliance processes into an organisation's existing operating model rather than operate as a separate standalone system. Institutions can configure customer journeys and workflows according to their products, risk requirements and internal controls, allowing processes to be adjusted as regulatory requirements change.

We founded Instarc on the belief that compliance should not be a bottleneck. By combining advanced technology with intelligent data architecture, we created a platform that enables regulated organisations to onboard customers faster, reach revenue sooner, reduce operational friction and scale with confidence,

said Jonathan Revell, CEO of Instarc.

The new investment will be used to accelerate the commercial rollout of the platform among financial institutions and other accountable organisations in South Africa. Instarc has developed the underlying system to be scalable and adaptable to different regulatory frameworks, providing a basis for potential expansion into other markets.

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