The big picture: CoComply has raised $2.5 million in funding to expand its platform designed to help companies identify and manage 'hidden' contractors, consultants, and disguised full-time workers within their supplier agreements and spend data. This RegTech scale-up aims to enhance external workforce compliance.

Why it matters: The rise of the contingent workforce and increasing regulatory scrutiny on worker classification make tools like CoComply crucial for mitigating compliance risks and optimizing workforce management.

Between the lines:

• CoComply's platform surfaces hidden headcount across statements of work and spend.
• It provides audit trails for classification decisions, working with mid-market to FTSE 100 organizations.
• The funding round was led by NPIF II – Mercia Equity Finance, Mercia Ventures, and Haatch.

Staffing & HR impact: This technology directly addresses the growing challenge of worker misclassification, helping staffing firms and HR departments ensure compliance and avoid costly penalties. It also provides greater visibility into total workforce costs and resource allocation.

The bottom line: Expect continued investment in AI-powered solutions that bring transparency and compliance to the complex world of external talent.