FlexFactor, a provider of decline recovery solutions for eCommerce brands, announced it raised $16.8 million in Series A funding. The funding round was led by Bessemer Venture Partners, with additional participation from seed investors.
Global e-commerce sales exceeds trillions of dollars every year, but a persistent challenge continues to impact merchant success: which are failed payments at checkout. This leads to lost revenue, missed opportunities to engage with new customers, and lower customer lifetime value (LTV). In the US, hundreds of billions of dollars is lost annually due to failed payments and cart abandonment. And with the average merchant having a notable decline rate, FlexFactor’s mission is to equip brands globally with the means to turn payment declines into successful orders and lasting customer relationships.
FlexFactor’s proprietary AI-based platform sets a new standard in recovering false payment declines. And the platform instantly evaluates and rescues failed transactions across all decline reasons, including Insufficient Funds.
FlexFactor’s approach enables merchants to recover up to 30% of failed payments, significantly outperforming traditional eCommerce norms. And FlexFactor provides a comprehensive solution for both eCommerce and subscription orders. On average, brands using FlexFactor convert 5% more customers at checkout, translating into a direct 5% increase in revenue. And brands also see an added 3-5% revenue uplift over time built on lasting consumer relationships.
KEY QUOTES:
“Payment declines is perhaps the largest, yet most unresolved problem in payments. Elio and Ze’ev bring decades of experience in data science, credit risk, and underwriting, to address the well-known problem of failed customer transaction attempts across all decline types in real time. The team has already delivered tremendous impact for their early customers and we look forward to the company’s global expansion.”
-Charles Birnbaum, partner at Bessemer Venture Partners
“We’re excited to partner with Bessemer Venture Partners on the next phase of our journey. The new funding will further our R&D, while expanding global operations with sales and support. We are poised to rapidly expand in our focus markets as we redefine the possibilities of decline recovery, addressing the unmet needs of merchants everywhere.”
-FlexFactor CEO and Co-Founder Elio Vitucci
“FlexFactor tackles an unsolved problem in the commerce landscape. Businesses engaged with us are driving 5% more top line revenue by saving legitimate customers who would otherwise be turned away at checkout. Lost customers have lower LTV and are less likely to return again.”
-FlexFactor CCO and Co-Founder Ze’ev Shoval
