Funding Fuels Company’s Commitment to Enabling Profitable Growth through Safeguarding Online Businesses from Rapidly Growing Illegitimate Chargeback Activity
Chargeflow, the pioneering chargeback automation solution tailored exclusively for online businesses, announced the successful closure of an $11 million financing round led by OpenView, a venture capital firm specializing in product-led business software. Building upon a previously undisclosed $3 million pre-seed round, this investment will empower the company to further enhance its technology development efforts and strengthen its growth trajectory in the US market, solidifying its position as a leader in the industry.
As online commerce continues to surge, more and more retailers are being victimized by incidents of chargeback fraud—Experts report that chargebacks will cost merchants over $100 billion in 2023. Chargeback fraud occurs 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.
“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,” said Ariel Chen, co-founder and CEO of 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.”
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While other solutions in the market rely on manual, time-consuming processes, Chargeflow sets itself apart with its fully automated chargeback mitigation platform. 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, significantly improving the chargeback win rate for online businesses. The platform calculates the projected success of the chargeback dispute by comparing transaction data and leveraging its comprehensive data analysis capabilities.
One of the unique aspects 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. Additionally, Chargeflow understands the importance of meeting customers where they already are in as frictionless a way as possible. That’s why Chargeflow seamlessly integrates with existing ecommerce platforms, payment service providers (PSPs), and other related tools. This integration allows online businesses to leverage Chargeflow’s capabilities without disrupting their existing workflows, making the process effortless and convenient for our merchants.
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“OpenView is committed to investing behind great entrepreneurs building category-defining companies,” said Tom Holahan, a Partner at OpenView who will be joining Chargeflow’s board of directors. “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.”
Launched in 2021, Chargeflow has experienced surging demand from online retailers around the globe. In addition, Chargeflow is directly integrated with Shopify and its payment processor Shopify Payments, as well as PayPal, Stripe, Klarna, Braintree, and many more.