Chargeflow announced the closing of a $35 million Series A funding round, which includes a $10 million debt facility, bringing the company’s total funding to $49 million. The round was led by Viola Growth with participation from existing investor OpenView Venture Partners.
Chargeflow, a platform specialising in end-to-end automation of chargebacks and friendly-fraud prevention for merchants, will use the new capital to advance its artificial-intelligence-driven product development and to scale its global go-to-market operations in response to growing enterprise demand. The company states it has tripled revenue year over year and now supports over 15,000 merchants worldwide.
Chargebacks—initially designed as a consumer protection mechanism—have increasingly become a major source of revenue loss for merchants. According to industry data referenced by Chargeflow, the Mastercard-projected chargeback volume is expected to climb 24 percent by 2028, reaching 324 million chargebacks annually, with nearly 80 percent driven by what is known as “friendly fraud.” Consumers are disputing legitimate purchases, merchants are getting little recourse, and annual merchant losses surge past $100 billion.
Chargeflow’s platform automates the entire dispute lifecycle: from detecting potential chargebacks, to gathering and analysing transaction and customer data, to building and submitting evidence, and tracking outcomes in real time. The company reports “up to four times higher win rates” compared to manual dispute processes. The platform integrates with more than 100 leading payment, data and eCommerce systems, including Shopify, Stripe, PayPal, WooCommerce, Adyen and Afterpay.
With this Series A milestone, Chargeflow is also shifting strategic focus: having already established a foothold among small- and medium-sized merchants, it is now expanding into enterprise-level merchants where transaction volumes and chargeback risk are exponentially higher. To support this shift, the company has built a dedicated enterprise sales team headquartered in New York.
In addition to its core dispute automation offering, Chargeflow is rolling out new products including the recently announced “Chargeflow Connect” and “Chargeflow Prevent”. These extensions move the company beyond remediation into proactive prevention of post-purchase fraud and friendly-fraud disputes before they are initiated. The new offerings leverage proprietary algorithms, generative AI and continuous learning from the company’s network of millions of resolved cases.
Viola Growth noted that ecommerce’s rapid expansion—global retail ecommerce now surpassing $7.5 trillion—has been accompanied by a surge in chargeback volumes, making automation a critical merchant pain-point. The investor highlighted Chargeflow’s “AI-first product built with remarkable efficiency” as a key differentiator and expressed confidence in the company’s new product rollout and global expansion strategy.
For merchants grappling with an increasingly complex chargeback ecosystem, Chargeflow presents a consolidated, tech-enabled solution: automating workflows that once consumed significant time and resources, and enabling merchants to reclaim revenue from disputes while reducing future risk. The fresh capital positions the company to accelerate its product roadmap and support the next wave of growth across geographies and enterprise segments.
KEY QUOTES:
“Chargebacks were designed to protect consumers, but over time the system has become unbalanced, favoring buyers and leaving merchants powerless.”
“We’re on a mission to redefine the chargeback system itself, using AI to shift the balance of power back to merchants and create a truly fair, transparent, and automated future for digital commerce. With our industry-leading technology, we prevent nine out of ten disputes before they even occur and recover more revenue from the rest, restoring billions in fairness to the ecosystem. This funding enables us to expand globally, launch additional products that complete the Chargeflow AI ecosystem, and realize our vision for what chargebacks should be: intelligent, automatic, and equitable for every business.”
Ariel Chen, CEO and Co-Founder of Chargeflow
“As global retail e-commerce has doubled in recent years to reach $7.5 trillion, chargeback volumes have also surged, becoming a significant challenge for merchants.”
“We were highly impressed by how Chargeflow has established itself as the industry’s gold standard, achieving growth-stage revenues with an AI-first product built with remarkable efficiency. Beyond its powerful dispute automation platform, we’re equally excited about the company’s expansion into new products—Chargeflow Connect and Chargeflow Prevent—which will further enhance its value to merchants worldwide.”
Natalie Refuah, General Partner, Viola Growth
