Casap, a firm using AI to automate payment disputes and tackle first party fraud, has raised $25 million in a Series A funding round led by Emergence Capital.
Lightspeed Venture Partners, Primary Venture Partners, and SoFi joined the round, which brings Casap’s total funding to $33.5 million.
Casap claims that disputes are one of the most outdated, slow, and expensive workflows in financial services. As fraud tactics evolve, teams can’t keep up, leaving institutions vulnerable and consumers frustrated. First-party fraud now accounts for 30-50% of total fraud losses.
The firm's AI agents are built to handle the full dispute lifecycle, from intake to chargeback filing and member communication, in one system. The platform analyses evidence, predicts outcomes, and automates key actions, such as issuing credits, filing chargebacks and responding to merchants. A proprietary fraud score identifies suspicious consumers and merchants to proactively reduce disputes.
Casap says that the credit unions, banks and fintechs using its technology can see over 50% reduction in fraud losses, positive ROI in weeks and scaled case volume without additional headcount.
The new funding will be used to upgrade Casap’s first-party fraud scoring and AI decisioning and hiring.
“Financial institutions are under pressure to do more with less: stronger consumer retention, fewer losses, and no regulatory missteps,” says Shanthi Shanmugam, CEO, Casap. “Casap delivers exactly that, transforming the dispute experience into a loyalty driver and a competitive advantage."