OpenView Backs Chargeflow with US$11 Million to Expand AI-Powered Chargeback Automation Solution

OpenView Backs Chargeflow with US$11 Million to Expand AI-Powered Chargeback Automation Solution

The latest funding will drive product development, company expansion and e-commerce fraud prevention.

Chargeflow, an automated chargeback platform headquartered in Delaware, the U.S., has successfully raised a substantial US$11 million in a funding round led by venture capital firm OpenView. This funding, building on a previously concealed US$3 million pre-seed round, pushes Chargeflow’s total financing to US$14 million. The funding will ensure a robust push to ramp up its product development efforts, strengthen its technological capabilities and secure a commanding presence in the U.S. market.

Solving chargeback woes

The digital commerce landscape has been rapidly growing, accompanied by the escalating issue of chargeback fraud. By 2023, it’s anticipated that chargebacks could cost merchants US$100 billion. Predominantly, this fraudulent activity arises when consumers challenge transactions after the delivery of the stipulated products or services. Chargeback fraud not only reduces revenue but, when recurrent, can saddle businesses with hefty penalties.

Ariel Chen, Chargeflow’s co-founder and CEO, expressed that the inspiration behind Chargeflow’s inception was the genuine experience of grappling with chargebacks in prior e-commerce endeavors. 

In its commitment to mitigating this issue, Chargeflow has pioneered an automated chargeback platform. Leveraging generative AI and machine learning, it adeptly processes and crafts bespoke dispute evidence. This not only augments the likelihood of triumphant chargeback disputes but, by juxtaposing transaction data, also fine-tunes the platform’s data-driven predictive capabilities.

Chargeflow’s pricing structure further underlines its commitment to client-centricity. Businesses are invoiced exclusively for successful dispute recoveries, ensuring transparent, value-based billing. Complementing this is its seamless interfacing with established e-commerce platforms, payment service providers (PSPs) and various e-commerce utilities, facilitating effortless incorporation into existing business workflows.

Evolving beyond origins

Having begun as a Shopify app, Chargeflow’s journey since has been nothing short of transformative, culminating in partnerships with prominent payment processors like Klarna, Braintree, Recharge and Stripe. Looking ahead, Chargeflow plans for a broader range of integrations, aligning with an array of swift, robust and scalable platforms and payment gateways.

OpenView’s Partner, Tom Holahan, who will now be part of Chargeflow’s board, lauded the Chargeflow team for creating a platform of immense value to its clients. Recognizing its exponential growth and partnerships with giants like Shopify, Stripe and PayPal, Holahan expressed enthusiasm about the alliance with Chargeflow.

Furthermore, this capital infusion positions Chargeflow to expand its product suite, as evidenced by recent launches such as Chargeflow Alerts and a brand-new Stripe App. Preliminary feedback points to their potential as market front-runners, supported by positive feedback from the industry.

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Header image courtesy of Pexels

Press release link: 

https://www.chargeflow.io/blog/chargeflow-14m-funding-announcement

https://www.globenewswire.com/news-release/2023/08/08/2720747/0/en/Chargeflow-Secures-14M-in-Funding-Led-by-OpenView-to-Fuel-its-AI-Driven-Chargeback-Automation-Solution-Market-Expansion.html

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