Whatsapp compliance platform LeapXpert raises another $22 million

New York-based regtech LeapXpert has secured an additional $22 million in funding to help fintechs and financial institutions navigate the regulatory implications of messaging services such as WhatsApp, iMessage and WeChat.

Customers increasingly expect businesses to offer customer service through these channels, but this creates a potential conflict within the compliance and privacy policies of financial institutions and businesses. In September, the SEC and CFTC fined several Wall Street banks $2 billion for failing to monitor their employees’ use of WhatsApp in business. Now there are fears that more cases may follow.

A soon-to-be-released report from LeapXpert suggests that compliance technology, which can be used by companies to regulate their employees’ use of such platforms, is only now beginning to catch up with their widespread use.

LeapXpert’s $22mn Series A expansion was led by Rockefeller Asset Management through its Technology Ventures Group, with additional investment from Uncorrelated Ventures, the Partnership Fund for New York City, a new strategic investor, and existing investors. It comes a year after unveiling an industry-first solution for iMessage communication capture, and 17 months since the company’s original Series A fundraising.

It will use the latest round of funding to meet growing demand for the platform from the financial sector and accelerate its expansion into other industry verticals.

LeapXpert wants to “increase its reach” in the US

Chris Randazzo, Managing Partner of Rockefeller’s Technology Ventures Group, says: “LeapXpert is a market and innovation leader that has gained widespread traction and validation in the financial services industry as they expand their offering and reach globally. In a post-pandemic world, connecting with customers through their preferred communication channels has become a business mandate. Financial institutions in particular have accelerated their digital transformation to meet the increasing regulatory requirements related to communications.”

Salil Deshpande, founder and general partner at Uncorrelated Ventures, adds: “Customers should be able to use iMessage, WhatsApp, SMS, Signal, Telegram, WeChat or whatever [channel] to interact with their service providers. Financial institutions and other service providers should be able to communicate with these customers using Slack, Teams or something else, while still respecting security, compliance, regulations and governance. LeapXpert is really the only solution.”

“Today marks a significant milestone for LeapXpert’s growth journey,” said Dima Gutzeit, founder and CEO of LeapXpert. “As we look to further enhance our product offering and expand our reach in the US, we are excited to partner with Rockefeller Asset Management, Uncorrelated Ventures, the Partnership Fund for New York City and a new strategic investor. Our goal is to set the global the standard for responsible and flexible communication between employees and customers, and with this funding we are one step closer to achieving our vision.”