Chargeflow has closed a $35 million Series A funding round, including a $10 million debt facility, to accelerate its AI-powered chargeback automation platform. Viola Growth led the investment, with participation from existing backer OpenView Venture Partners. The round brings the company’s total funding to $49 million.

The fresh capital will drive product development and help Chargeflow complete its end-to-end automation suite while scaling operations to meet growing enterprise demand. The company has tripled revenue year over year and now serves more than 15,000 merchants across the globe.

The $100 Billion Problem Facing Online Merchants

Chargebacks were originally created to protect consumers from fraudulent transactions. But the system has shifted dramatically. Mastercard estimates chargeback volume will jump 24% by 2028, reaching 324 million disputes annually. Nearly 80% of these cases stem from “friendly fraud,” where customers dispute legitimate purchases. Merchants now lose over $100 billion each year to these disputes.

The problem goes beyond lost revenue. Each chargeback forces merchants to manually gather evidence across disconnected systems. It’s time-consuming, resource-intensive, and often unsuccessful. Chargeflow’s platform changes that equation by automating the entire process and recovering revenue with win rates up to four times higher than manual approaches.

Automation That Prevents Disputes Before They Happen

Chargeflow integrates with more than 100 payment, data, and eCommerce platforms, including Shopify, Stripe, PayPal, WooCommerce, Adyen, and Afterpay. The system automatically collects transaction data, builds evidence packages, submits disputes, and tracks outcomes in real time.

The platform’s AI-driven fraud detection takes things a step further. It identifies potential friendly fraud before chargebacks are filed, alerting merchants the moment suspicious activity appears. According to the company, this proactive approach prevents nine out of ten disputes from occurring, while its automation achieves success rates up to 80% on the remaining cases.

“Chargebacks were designed to protect consumers, but over time the system has become unbalanced, favoring buyers and leaving merchants powerless. 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.”

Ariel Chen, CEO and Co-founder of Chargeflow

Building the AI Engine Behind Chargeback Recovery

Chargeflow applies machine learning and data automation to manage disputes at scale. Its proprietary algorithms and generative AI automatically compile evidence, enrich merchant data for accuracy, and learn continuously from millions of resolved cases across its network of 15,000+ merchants.

This AI foundation now powers Chargeflow Prevent, a new product that extends the company’s technology beyond recovery. The tool proactively identifies and mitigates post-purchase fraud and friendly fraud disputes before customers initiate them, giving merchants an early warning system that can save both revenue and relationships.

From SMBs to Enterprise: Scaling the Platform

Chargeflow built its reputation serving small and medium-sized businesses, but the company is now targeting enterprise merchants where transaction volumes and chargeback risks multiply exponentially. The company recently established a new enterprise sales team based in New York to support this expansion.

The move addresses a growing need. As global retail eCommerce has doubled in recent years to reach $7.5 trillion, chargeback volumes have surged alongside it. Enterprise merchants processing millions of transactions face correspondingly massive exposure to dispute-related losses.

“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. 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.”

Natalie Refuah, General Partner at Viola Growth

Investor Confidence in AI-First Commerce Solutions

Viola Growth’s investment reflects broader confidence in AI-driven solutions for eCommerce infrastructure problems. The fund, Israel’s first and largest growth fund with more than $1 billion in assets under management, specializes in helping Israeli startups scale through growth stages. Founded in 2008, Viola Growth has invested in 36 companies with 12 exits to date.

OpenView Venture Partners, which participated in the round, has been backing Chargeflow since earlier stages. The continued support from existing investors signals strong performance and momentum as the company moves upmarket.

Chargeflow operates on a guaranteed ROI model with a security-first architecture, positioning itself as a zero-risk option for merchants looking to reclaim lost revenue. The platform’s hands-free approach and industry-leading win rates have helped it protect billions in revenue for its merchant base.

About Chargeflow

Chargeflow is the world’s first fully automated chargeback management platform, built by eCommerce entrepreneurs to fight friendly fraud and restore fairness to digital commerce. Powered by generative AI, proprietary automation, and deep payments expertise, Chargeflow enables merchants to recover and prevent chargebacks at scale—completely hands-free. With industry-leading win rates, a security-first architecture, and a guaranteed ROI model, Chargeflow protects billions in revenue for more than 15,000 merchants worldwide.

About Viola Growth

Viola Growth is Israel’s first and largest growth fund, with more than $1 billion in assets under management. Founded in 2008, the fund specializes in propelling Israeli startups through their growth stages, developing robust growth strategies, scaling efficiently, and forming global partnerships. Viola Growth has invested in 36 companies with 12 exits to date.

Origianl Creator: Ekaterina Pisareva
Original Link: https://justainews.com/companies/funding-news/chargeflow-raises-35m-series-a-for-ai-chargeback-tools/
Originally Posted: Wed, 19 Nov 2025 10:40:05 +0000