Chargeflow – a pioneering chargeback automation solution built exclusively for online businesses – recently announced the successful closure of an $11 million financing round led by OpenView, a VC firm specializing in product-led business software. Building on a previously undisclosed $3 million pre-seed round, this funding round will enable the company to further enhance its technology development efforts and strengthen its growth trajectory in the US market.
With online commerce continuing to surge, chargeback fraud incidents are victimizing more retailers. And experts report that chargebacks will cost merchants over $100 billion this year. Chargeback fraud happens when cardholders make an online transaction with their credit card and then file a dispute with the issuing bank after receiving the purchased goods or services.
Even though other solutions in the market rely on manual and time-consuming processes, Chargeflow sets itself apart with a fully automated chargeback mitigation platform. And by analyzing millions of data points and utilizing Generative AI and machine learning modules, Chargeflow swiftly processes and generates customized dispute evidence for each chargeback, thus improving the chargeback win rate for online businesses. The company’s platform calculates the projected success of the chargeback dispute by comparing transaction data and leveraging its comprehensive data analysis capabilities.
A unique aspect of Chargeflow’s approach is that it only bills merchants based on the successful recovery of disputes in their favor. This ensures that merchants are charged fairly and only for the value they gain from the platform’s services. Plus, Chargeflow understands the importance of meeting customers where they already are in as frictionless a way as possible.
This is why Chargeflow seamlessly integrates with existing e-commerce platforms, payment service providers (PSPs), and other related tools. And this integration allows online businesses to leverage Chargeflow’s capabilities without disrupting their existing workflows, making the process effortless and convenient for our merchants.
Chargeflow has experienced surging global demand from online retailers since launching in 2021. And Chargeflow is directly integrated with Shopify and its payment processor Shopify Payments, as well as PayPal, Stripe, Klarna, Braintree, and many more.
KEY QUOTES:
“Cardholders readily admit they file chargebacks out of convenience, and they are succeeding because retailers lack the resources, expertise and technology to quickly identify and stop this fraudulent activity. That’s why more and more businesses are turning to Chargeflow. Our team helps online retailers recover more revenue, and with this latest round of funding, we will further evolve our platform and scale our team to meet the surging demand from online retailers. We are excited to begin working with the OpenView team and leveraging their valuable expertise to help us accelerate the company’s growth and achieve these goals.”
― Ariel Chen, co-founder and CEO of Chargeflow
“OpenView is committed to investing behind great entrepreneurs building category-defining companies. Ariel, Avia, Reem and the rest of the Chargeflow team have built a platform that delivers significant and immediate value to customers. This has driven their exceptional growth and customer adoption as well as their key relationships with organizations such as Shopify, Stripe, and PayPal. We are excited to partner with the team and to support Chargeflow’s continued growth ”
― Tom Holahan, a Partner at OpenView who will be joining Chargeflow’s board of directors
