Chargeflow, the AI-powered chargeback automation platform, announced a $35 million Series A round — including a $10 million debt facility, which was led by Viola Growth, with contributions by existing investors OpenView Venture Partners, bringing the firm’s total funding to $49 million.
The capital injection should now help fuel Chargeflow’s AI-enhanced product development and complete its comprehensive chargeback automation suite, while scaling go-to-market operations to address enterprise demand.
Chargeflow reports that it has now tripled revenue YoY and now enables more than 15,000 merchants globally.
Initially intended to protect consumers, chargebacks have now become a significant source of loss for merchants.
Mastercard forecasts chargeback volume to increase 24% by 2028, reaching around 324 million chargebacks yearly, with almost 80% being attributed to so-called “friendly fraud.”
Merchants reportedly lose more than $100 billion every year to disputes.
Chargeflow’s AI platform reportedly automates the process end-to-end — thus potentially preventing disputes before they take place and then recovering lost revenue with “up to 4x higher win rates.”
Each chargeback requires merchants to manually obtain and turn in evidence across increasingly fragmented systems. This outdated process ends up consuming considerable time and precious resources.
Chargeflow claims that it focuses on eliminating this friction via complete automation, integrating with more than 100 different payment, data, and digital commerce platforms, such as Shopify, Stripe, PayPal, WooCommerce, Adyen, and Afterpay. This approach helps with effectively detecting, managing, and preventing potential chargebacks “at scale.”
As explained in the update, the platform automatically collects and carefully analyzes transaction data, “builds and submits evidence, and tracks dispute outcomes in real time.”
Enabled by AI-enhanced fraud detection, Chargeflow reportedly identifies and prevents so-called friendly fraud prior to it actually happening, warning merchants the moment a possible chargeback is identified and providing them a meaningful edge.
Ariel Chen, CEO and Co-founder of Chargeflow said they are on a mission to redefine the chargeback system, “using AI to shift the balance of power back to merchants and create a … fair, transparent, and automated future for digital commerce.”
With their tech, they intend to “prevent nine out of ten disputes before they even occur and recover revenue from the rest.”
Chen added that this funding enables them “to expand globally, launch additional products that complete the Chargeflow AI ecosystem, and realize their vision for what chargebacks should be: intelligent, automatic, and equitable for every business.”
Natalie Refuah, General Partner, Viola Growth said that Chargeflow has established itself as the industry’s standard, achieving “growth-stage revenues with an AI-first product built with efficiency.”
Refuah added that beyond its dispute automation platform, they’re looking forward to the company’s expansion into other products—such as Chargeflow Connect and Chargeflow Prevent—which will aim to “enhance its value to merchants worldwide.”
Chargeflow’s AI-enhanced platform applies machine learning and data automation to properly manage and prevent chargebacks.
Using various algorithms and generative AI, Chargeflow says that it automatically compiles and submits dispute evidence, “enriches merchant data for accuracy, and continuously learns” from resolved cases across its merchant network.
This foundation enables Chargeflow Prevent, further extending the firm’s tech stack beyond chargeback recovery to mitigating “post-purchase fraud and friendly fraud disputes before they are initiated.”
Having established its role and services among small and medium-sized businesses, Chargeflow is expanding to serve enterprise-level merchants where transaction volumes – and chargeback risks – are higher.