Israeli Chargeflow raises $35M to fight 'friendly fraud' surge

Friendly fraud now accounts for tens of billions of dollars in annual damage.

An Israeli startup aiming to overhaul one of e-commerce’s most costly headaches has secured a major cash infusion.

Chargeflow, which builds AI-powered tools to automate chargeback disputes, announced a $35 million Series A round this week, including a $10 million debt facility. The investment was led by Viola Growth, with participation from existing backer OpenView, bringing total funding to $49 million.

The New York– and Tel Aviv–based company said the new funding will accelerate product development and expand its global reach as demand from large merchants continues to surge. Chargeflow—already used by more than 15,000 merchants worldwide—reported tripled year-over-year revenue and says it is now scaling enterprise sales out of its New York office.

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