Fintech company Chargeflow, which makes a platform to automate chargebacks, has raised $25 million in a Series A funding round. They also raised $10 million through a debt round.
The equity round was led by Viola Growth, with support from existing investor OpenView Venture Partners and other backers. With this, Chargeflow’s total funding has reached $49 million.
Chargeflow has 160 employees, with 60 working at its headquarters in Modi’in. The company also has operations in the United States, the Philippines, and Poland.
Chargeflow says it has tripled its revenue in a year and now works with over 15,000 businesses worldwide. In the Philippines, it has support and finance teams, while its development teams are in Poland because it’s cheaper to operate there.
Ariel Chen, CEO and co-founder of Chargeflow, explained the company’s product:
“Sometimes, cardholders skip the merchant and go straight to their bank to dispute or cancel a transaction. When this happens, the merchant must prove the charge is valid, or they risk losing both the money and the goods. Chargeflow is a platform that helps prevent fraud after a transaction and automates chargebacks. We protect merchants from the moment a payment is made, through the dispute process, and at every stage of a chargeback.”
“We automatically collect and enrich the data around each transaction, build the best possible dispute response, and submit it back to the banks at scale. In subscriptions and certain digital verticals, dispute and chargeback rates can easily reach a few percent of revenue, and in categories like gaming and digital goods, they can be even higher. Our core pricing is performance-based on recovered funds, and for some of our newer products we use a per-transaction fixed-fee model.”
“Riskified and Forter focus on fraud,” Chen says. “We come from the world of transaction cancellations, so we developed a product designed specifically for that. They operate before the transaction, and we operate after the transaction. Some organizations use both solutions, while smaller businesses often choose only us because they can’t afford multiple systems. For every transaction we review, we charge 20 cents.”
The company was founded by brothers Ariel Chen (CEO) and Avia Chen (CMO), and is based in Modi’in. In recent years, chargebacks have increased a lot because of the growth of e-commerce. While chargebacks were created to protect consumers, their misuse has become a major cause of losses for businesses of all sizes.
According to Mastercard, chargebacks are expected to rise 24% by 2028, reaching 324 million cases per year. Around 80% of these cases are “friendly fraud,” where the customer—not a third party—claims they didn’t receive a product or were charged incorrectly. These disputes lead to over $100 billion in losses for businesses every year.
Handling transaction denials can take a long time because companies need to gather and submit a lot of documents. Instead of doing this manually, Chargeflow automates the entire process.
The platform connects with over 100 payment, data, and e-commerce systems, including Shopify, Stripe, PayPal, WooCommerce, Adyen, and Afterpay. It detects, manages, and prevents transaction denials, collects and analyzes data, builds and submits evidence, and tracks results in real-time.
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