Chargeflow, a chargeback-automation company, has recently secured USD 35 million in Series A funding. This round includes a USD 10 million debt facility and is led by Viola Growth with the support of an existing investor. Up to now, Chargeflow has amassed a total investment of USD 49 million. The funds will be used for product development and expanding its global commercial operations as it addresses increasing enterprise demand.
Business Expansion and Product Development
The company has seen significant growth, tripling its revenue over the past year. It now supports more than 15,000 merchants worldwide. Chargeflow’s platform is designed to automate the evidence-gathering and submission process typically performed manually by merchants across various systems. The platform integrates with numerous payment and eCommerce providers such as Shopify, Stripe, PayPal, WooCommerce, Adyen, and Afterpay.
Chargebacks, initially meant to protect cardholders, have become a growing operational challenge for merchants. Industry projections suggest that global chargeback volumes could rise by nearly 25% by 2028, with a significant portion attributed to friendly fraud. Merchant losses associated with such disputes are estimated to exceed USD 100 billion annually.
Chargeflow’s technology processes transaction data automatically, compiles evidence, and monitors dispute outcomes in real-time. The company also uses fraud-detection models to identify potential disputes before they occur. According to Chargeflow’s statistics, the platform achieves win rates that are several times higher than those of manual methods.
Strategic Goals
A spokesperson for Chargeflow stated that their aim is to rework a system that they believe often disadvantages merchants. The latest funding will be allocated towards enhancing product capabilities and expanding the company’s international presence. An official from Viola Growth noted that Chargeflow has operated efficiently and expressed enthusiasm about the company’s growing suite of tools, particularly those focused on preventing disputes.
