TLDR: Casap, a fintech startup, has successfully raised $25 million in Series A funding, bringing its total investment to $33.5 million. The company is leveraging its AI-powered platform to revolutionize payment dispute resolution and proactively tackle first-party fraud, a significant challenge costing businesses billions annually. This funding will accelerate the expansion of its AI decisioning and fraud scoring capabilities, aiming to eliminate friction across the entire payments lifecycle.
New York-based fintech innovator, Casap, has announced the successful closure of a $25 million Series A funding round, spearheaded by Emergence Capital. The round also saw significant participation from Lightspeed Venture Partners, Primary Venture Partners, and SoFi, elevating Casap’s total funding to an impressive $33.5 million. This substantial investment underscores a growing industry demand for advanced solutions in payment dispute resolution and fraud prevention, particularly as financial institutions grapple with outdated tools in an evolving landscape.
Casap’s core mission is to address the ‘triple threat’ of money friction, fraud, and the strategic enablement of artificial intelligence within financial services. The company’s AI-powered platform is designed to streamline the notoriously slow and expensive process of payment disputes. It offers an intelligent, unified system that manages the entire dispute lifecycle, from initial intake to chargeback filing and customer communication. The platform intelligently analyzes evidence, predicts outcomes, and automates critical actions such as issuing credits and responding to merchants.
A key focus for Casap is combating first-party fraud, a pervasive issue where individuals initiate fraudulent claims under their own names. This type of fraud is a substantial challenge for financial services, accounting for an estimated 30-50% of total fraud losses and costing businesses approximately $100 billion annually, according to fraud prevention firm Socure. Casap’s proprietary fraud score is a pivotal feature, proactively identifying suspicious consumers and merchants to mitigate disputes before they escalate.
Customers utilizing Casap’s technology are already reporting significant benefits. Credit unions, banks, and fintechs have observed over a 51% reduction in fraud losses, achieved a positive return on investment (ROI) within weeks, and scaled their case volumes without needing additional headcount. Rob Keatts, an executive vice president at Chartway, noted a dramatic reduction in dispute resolution time, from 90 days to an average of 23 days with Casap’s platform.
Carlotta Siniscalco, Partner at Emergence Capital, emphasized the urgency of Casap’s solution, stating, “First-party fraud is on the rise, and financial institutions are armed with outdated tools. Casap turns disputes—one of the most emotionally charged moments in finance—into an opportunity to earn trust, the only currency that matters.” Shanthi Shanmugam, Co-founder and CEO of Casap, added, “Financial institutions are under pressure to do more with less: stronger consumer retention, fewer losses, and no regulatory missteps. Casap delivers exactly that, transforming the dispute experience into a loyalty driver and a competitive advantage. And disputes are just the beginning – we’re redefining how financial institutions operate payments to turn fraud and inefficiency from everyday realities into rare exceptions.”
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The new funding will be instrumental in accelerating the expansion of Casap’s first-party fraud scoring and AI decision-making capabilities, supporting strategic hiring initiatives, and furthering its vision of eliminating friction across the entire payments ecosystem.
