Chargeflow, a leading AI-powered chargeback automation platform, has raised $35 million Series A funding round – including a $10 million debt facility – to fuel its AI-driven product innovation and complete its end-to-end chargeback automation suite.
Led by Viola Growth, with participation by existing investors OpenView Venture Partners and bringing the company’s total funding to $49 million, the new capital will also now scale go-to-market operations to meet accelerating enterprise demand.
Originally meant to protect consumers, chargebacks have become a major source of loss for merchants. Mastercard projects chargeback volume to rise 24% by 2028, reaching 324 million chargebacks annually, with nearly 80% driven by “friendly fraud.” Merchants now lose over $100 billion each year to disputes.
Each chargeback requires merchants to manually gather and submit evidence across fragmented systems, consuming valuable time and resources. Chargeflow eliminates this friction through full automation, integrating with more than 100 leading payment, data and ecommerce platforms, including Shopify, Stripe, PayPal, WooCommerce, Adyen and Afterpay, to detect, manage and prevent chargebacks at scale.
The platform automatically collects and analyses transaction data, builds and submits evidence and tracks dispute outcomes in real time. Powered by AI-driven fraud detection, Chargeflow also proactively identifies and prevents friendly fraud before it occurs, alerting merchants the moment a potential chargeback is detected and giving them a decisive advantage.
This prevents disputes before they occur and recovering lost revenue with up to four times higher win rates. As a result, Chargeflow has tripled revenue year over year and now powers some 15,000 merchants worldwide.
“Chargebacks were designed to protect consumers, but over time the system has become unbalanced, favouring buyers and leaving merchants powerless,” says Ariel Chen, CEO and Co-founder of Chargeflow. “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.”
“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,” adds Natalie Refuah, General Partner, Viola Growth. “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.”
Chargeflow’s AI-driven platform applies machine learning and data automation to manage and prevent chargebacks at scale. Using proprietary algorithms and generative AI, Chargeflow automatically compiles and submits dispute evidence, enriches merchant data for accuracy and continuously learns from millions of resolved cases across its 15,000+ merchant network. This same foundation now powers Chargeflow Prevent, extending the company’s technology beyond chargeback recovery to proactively mitigate post-purchase fraud and friendly fraud disputes before they are initiated.
Having established its leadership among small and medium-sized businesses, Chargeflow is now expanding to serve enterprise-level merchants where transaction volumes – and consequently chargeback risks – are exponentially higher. The company has recently built out a new enterprise sales team headquartered in New York to support this next phase of growth.
