Casap Raises $25M Series A to Revolutionize Payment Disputes with AI and Eliminate First Party Fraud Losses

Shanthi Shanmugam

​Casap, the leader in intelligent automation for dispute and fraud operations, has raised $25 million in Series A funding led by Emergence Capital, with participation from Lightspeed Venture Partners, Primary Venture Partners, SoFi and others. This brings Casap’s total funding to $33.5 million and sets a new record for venture investment in the payment disputes category. The raise signals a surge in demand from financial institutions looking to streamline dispute resolution and reduce fraud losses while building consumer loyalty.
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Disputes are one of the most outdated, slow, and expensive workflows in financial services.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 and is especially challenging for financial institutions to identify.

Proven results at scale
Casap is the first company to systematically solve first-party fraud. Casap’s AI-powered platform is already in use by a fast-growing base of credit unions, banks and fintechs seeking to modernize their dispute process and lower fraud. Chartway FCU and MidSouth Community FCU are among the many institutions seeing real impact: over 51% reduction in fraud losses, positive ROI in weeks and scaled case volume without additional headcount. By replacing fragmented tools with a unified intelligent system, Casap helps teams resolve cases faster and build consumer trust.

Transforming the broken dispute process with AI
From intake to chargeback filing and member communication, Casap’s AI agents handle the full dispute lifecycle in one system. The platform intelligently analyzes evidence, predicts outcomes, and automates key actions, such as issuing credits, filing chargebacks and responding to merchants. Casap’s proprietary fraud score identifies suspicious consumers and merchants to proactively reduce disputes. Customers benefit from real-time decisions, predictive win scores, and self-service experiences that build trust.

Expanding to meet growing customer demand
Customers are actively requesting Casap to help manage other post-transaction workflows. This funding will accelerate the expansion of Casap’s first-party fraud scoring and AI decisioning, support key hiring and continue executing on its vision of eliminating friction across the payments lifecycle.

“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,” said Carlotta Siniscalco, Partner at Emergence Capital. "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."

“Casap has been the most meaningful operational upgrade to our claims process in decades. Previously, we had to choose between delivering a great member experience or keeping fraud losses in check. With Casap, we’re able to do both,” said Rob Keatts, Chief Strategy Officer at Chartway FCU. “It’s replaced a patchwork of spreadsheets, emails, and manual tracking with a system that gives us real-time visibility and peace of mind. Our team can now resolve issues faster, without relying on third parties or worrying about missed deadlines. It’s a modern solution that actually fits the way we want to operate.”

“Financial institutions are under pressure to do more with less: stronger consumer retention, fewer losses, and no regulatory missteps,” said Shanthi Shanmugam, Co-founder and CEO of Casap. “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.”

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