Casap has raised $25m in Series A funding, led by Emergence Capital, for its artificial intelligence (AI)-powered disputes automation and fraud prevention platform.
Additional contributions in the funding round came from Lightspeed Venture Partners, Primary Venture Partners, SoFi, and others.
This investment increases Casap’s total funding to $33.5m. According to Casap, the funding reflects growing interest from financial institutions seeking advanced solutions for dispute resolution and fraud prevention.
The company specialises in AI-driven automation designed to address payment disputes and prevent fraud.
Casap offers a platform that integrates regulatory expertise and network connections to efficiently identify fraudulent claims and streamline dispute resolutions, thereby significantly reducing costs.
The latest funding will facilitate the expansion of Casap’s first-party fraud scoring capabilities and AI decision-making processes. It will also support strategic hiring initiatives as the company aims to eliminate friction across the payments lifecycle.
The firm claimed that financial institutions leverage its platform to enhance efficiency, strengthen fraud defences, and improve customer satisfaction.
Currently, first-party fraud poses a substantial challenge for financial services, accounting for 30-50% of fraud losses. Casap said that it is pioneering efforts to tackle this issue systematically with its AI-powered solutions.
Emergence Capital partner Carlotta Siniscalco said: “First-party fraud is on the rise, and financial institutions are armed with outdated tools.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.”
Credit unions, banks, and fintech companies are said to be utilising Casap’s platform to modernise their dispute processes and reduce fraud losses. Notably, institutions such as Chartway FCU and MidSouth Community FCU have reported over 51% reductions in fraud losses and positive returns on investment within weeks, the company claimed.
Casap’s platform covers the entire lifecycle of disputes, from initial intake to chargeback filing and customer communication. Its AI agents analyse evidence, predict outcomes, and automate critical tasks like issuing credits and responding to merchants.
The system’s proprietary fraud score helps identify suspicious activities, reducing potential disputes proactively. Customers benefit from quicker decisions, predictive win scores, and self-service options.
Casap 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. 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.”
