FinTech News
Payment Dispute Company Casap Raises $25 Million
A FinTech specializing in payment dispute automation has raised a new round of funding.
About the Round:
This week, Casap announced that it had raised $25 million. The Series A was led by Emergence Capital, while Lightspeed Venture Partners, Primary Venture Partners, and SoFi also participated. To date, Casap has now raised a total of $33.5 million, including a $7 million Seed Round (led by Lightspeed) last year. As Casap notes, this new investment comes as demand for payment despite resolution has surged.
About Casap:
Casap is a FinTech that helps banks and other institutions to identify fraud sooner and resolve disputes more quickly. Additionally, the startup says it does all this while not only preserving but improving the customer experience. To do this, the platform leverages AI to analyze evidence and predict outcomes. The company also utilizes a proprietary fraud score to help spot suspicious behavior.
According to Casap, its clients have seen an average of 51% reduction in fraud losses after implementing the service, as well as a 90% decrease in the costs associated with each dispute. In turn, the average Casap client sees a return on investment in six months or less.
What They’re Saying:
Explaning the importance of the Casap platform, the company’s co-founder and CEO Shanthi Shanmugam said, “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.”
Shanmugam added, “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.”
Meanwhile, Emergence Capital partner Carlotta Siniscalco said of the firm’s investment in Casap, “First-party fraud is on the rise, and financial institutions are armed with outdated tools.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. In this industry, you can’t move fast and break things. Shanthi and Saisi took a methodical approach to building Casap, leading with a deep understanding of risk, compliance, and empathy for the customer. Casap embodies the transformational infrastructure play we love to back at Emergence.”
My Thoughts:
From the sounds of it, Casap is the type of product you wish didn’t have to exist — but, in reality, it’s very helpful that it does. Having dealt with fraudulent chargebacks on a retail level, I can only imagine the number of disputes that exist among banks and large institutions. Thus, if Casap is as effective as it claims, it’s no wonder the company is attracting investors.
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