Casap, a company leveraging AI to automate payment disputes and address first-party fraud, has successfully raised $25 million in a Series A funding round led by Emergence Capital. This round also saw participation from Lightspeed Venture Partners, Primary Venture Partners, and SoFi, bringing Casap’s total funding to $33.5 million.
The firm points out that payment disputes are among the most outdated, slow, and costly processes in financial services. As fraud tactics evolve, institutions struggle to keep pace, making them vulnerable and frustrating consumers. First-party fraud now accounts for 30-50% of total fraud losses.
Casap’s AI agents manage the entire dispute lifecycle—from intake to chargeback filing and customer communication—within a single system. The platform analyzes evidence, predicts outcomes, and automates key actions, such as issuing credits and responding to merchants. A proprietary fraud score helps identify suspicious consumers and merchants, proactively reducing disputes.
According to Casap, credit unions, banks, and fintechs using its technology can achieve over a 50% reduction in fraud losses, a positive ROI within weeks, and scaled case volume without increasing staff.
The newly acquired funding will be directed towards enhancing Casap’s first-party fraud scoring, AI decision-making capabilities, and expanding its workforce.
“Financial institutions are under pressure to do more with less: stronger consumer retention, fewer losses, and no regulatory missteps,” says CEO Shanthi Shanmugam. “Casap delivers exactly that, transforming the dispute experience into a loyalty driver and a competitive advantage.”