How is US$35m of Chargeflow Funding Automating Chargebacks?

Chargeflow has secured US$35m in Series A funding to accelerate development of what the company describes as the first comprehensive friendly fraud prevention solution. 

The round was led by Viola Growth with participation from OpenView Venture Partners, Journey Ventures and angel investors including David Avgi, former CEO of SafeCharge. 

The funding package includes a US$10m debt facility, bringing the Tel Aviv-based company's total capital raised to US$49m.

The investment arrives as chargeback volumes surge across global commerce.

Data from Chargeflow predicts that the volume of global chargebacks could rise to 324 million transactions in 2028, with 2025 currently forecast to have 261 million global chargebacks.

The company reports its revenue has tripled and its customer base has doubled over the past year. 

Chargeflow now serves more than 15,000 businesses including Miro, Huel, Fanatics and Sweetgreen, having recovered over US$100m in disputed revenue.

From pain to platform

The company was founded by brothers Ariel and Avia Chen after experiencing severe chargeback problems at their previous beauty subscription business.

"Chargebacks were created to protect consumers, but the system has shifted in ways that leave merchants unprotected and overwhelmed," said Ariel Chen, co-founder and CEO. 

Ariel continues: "Our mission is to democratise chargebacks and restore fairness by preventing friendly fraud before it happens and automating every step of dispute management."

The founders noted that up to 75% of chargebacks stem from first-party misuse rather than criminal fraud.

Mastercard projects a 24% increase in global disputes from 2025 to 2028 as e-commerce continues its climb toward US$7.4tn in annual sales. 

How ChargebackOS is changing e-commerce

The new funding will support the rollout of ChargebackOS, which Chargeflow positions as a unified post-purchase operating system for digital commerce.

The platform comprises five integrated components addressing different aspects of chargeback management. 

Prevent uses AI-driven models and data from Chargeflow's 15,000-merchant network to identify first-party misuse and post-purchase fraud immediately after checkout.

Automation deploys an agentic AI workflow to fetch disputes, enrich them with data, build structured responses and submit evidence whilst learning from millions of past cases.

Alerts integrates with issuers through card scheme networks to enable near-real-time dispute resolution and reduce chargeback ratio risk.

Insights provides an AI-powered dashboard unifying data across more than 50 payment providers to expose operational blind spots before they escalate into disputes. 

Connect offers a plug-and-play API layer allowing payment service providers and platforms to embed Chargeflow's capabilities directly into their products.

The company has demonstrated significant momentum with enterprise merchants. 

Fanatics, one of the world's largest sports merchandise brands, recovered more than US$800,000 in disputed revenue within months of partnering with Chargeflow whilst more than doubling its win rates. 

This year alone, Chargeflow shipped 30 new integrations including AI-powered automated customer communication analysis for Gmail, Zendesk and Gorgias. 

New partnerships include WooCommerce and Airwallex.

Next-generation infrastructure

Beyond ChargebackOS, Chargeflow is developing what it calls Digital Commerce Agents, which represent a deeper application of AI to post-purchase operations. 

These systems are designed to work alongside merchant teams around the clock, monitoring risk in real time, detecting emerging fraud patterns and taking autonomous action. 

The agents will be powered by machine learning, generative AI and transformer models to understand intent, context and behaviour at levels traditional systems cannot match. 

The company frames this as the foundation for a new era of autonomous dispute resolution and proactive fraud prevention.