FlexFactor Raises $16.8M Series A from Bessemer Venture Partners to Tackle the $500 Billion eCommerce Problem: Checkout Failures Due to Payment Declines

FlexFactor, a cutting-edge provider of decline recovery solutions for eCommerce brands, announced the completion of its $16.8 Series A funding round. The round was led by Bessemer Venture Partners, with additional participation from seed investors.

Global eCommerce sales exceed $5 trillion annually, yet a persistent challenge continues to impact merchant success: failed payments at checkout. This translates into lost revenue, missed opportunities to engage with new customers, and lower customer lifetime value (LTV). In the US, more than $500 billion is lost annually due to failed payments and cart abandonment. With the average merchant having a 10-15% decline rate, FlexFactor’s mission is to equip brands globally with the means to turn payment declines into successful orders and lasting customer relationships.

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FlexFactor’s proprietary AI-powered platform sets a new standard in recovering false payment declines. The platform instantly evaluates and rescues failed transactions across all decline reasons, including Insufficient Funds. FlexFactor’s approach allows merchants to recover up to 30% of failed payments, significantly outperforming traditional eCommerce norms. FlexFactor offers a comprehensive solution for both eCommerce and subscription orders. On average, brands using FlexFactor convert 5% more customers at checkout, translating into a direct 5increase in revenue. Brands also see an added 3-5% revenue uplift over time built on lasting consumer relationships.

“Payment declines is perhaps the largest, yet most unresolved problem in payments,” said Charles Birnbaum, partner at Bessemer Venture Partners. “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.”

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“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,” said FlexFactor CEO and Co-Founder, Elio Vitucci. “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 CCO and Co-Founder Ze’ev Shoval added, “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.”

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AI-powered platformBessemer Venture PartnersCEO and co-founderCharles Birnbaumcutting-edge providereCommerce brandsElio VitucciFlexFactorNewsPartnerZe'ev Shoval