Casap Announces $56 Million Series B to Expand Into Bank Operations

Casap announced a $56 million Series B on Oct. 28, giving the financial technology startup capital to expand from payment disputes into adjacent work for banks and card issuers, including customer complaints and collections.

Base10 Partners led the round. Synchrony and Experian joined as strategic investors. Casap did not disclose its valuation. The financing brings the company’s total funding to $90 million since its 2023 launch.

Casap’s AI was trained using large models and paired with a system designed for dispute resolution. CEO and co-founder Shanthi Shanmugam described the challenge of evaluating cardholder claims: “they are written in a way that almost assumes that no one lies.”

Shanmugam said some financial institutions resolve disputes below a set dollar amount in the customer’s favor rather than spend time and money investigating. That threshold is typically about $30, she said, but can be higher in some cases.

Casap says customers using its tools have cut first-party fraud losses by as much as 51%. The company also reports a 96% chargeback win rate among its customers, compared with an industry average of 60%. First-party fraud involves a cardholder making a false claim about a purchase they authorized.

Shanmugam said the software reduces the average time to resolve a dispute to eight days, compared with as long as 90 days through traditional methods. Human reviewers remain involved, she said, and often need only one to two minutes to handle a case after the system streamlines the work.

Casap has not disclosed all the indicators its system uses to assess claims. Shanmugam said they include a card’s physical location and spending patterns. The company plans to use the new funding to move into other bank and card issuer operations, including complaint handling and collections.