Casap Raises $56M Series B to Expand AI Automation in Banking

Casap has raised $56 million in a Series B round led by Base10 Partners, with strategic investments from Experian and Synchrony, bringing its total funding to $90 million. The San Francisco company plans to expand its AI software beyond fraud investigations and payment disputes into collections, claims and other complex banking operations. Casap says its platform helps financial institutions resolve disputes faster while reducing fraud losses.

Funding and Growth

The new round came just over a year after Casap's $25 million Series A and was oversubscribed. Existing investors including Emergence Capital and Lightspeed Venture Partners also continued their support. Casap says it has increased revenue 10-fold since its Series A, exceeding its original growth target by more than two times.

AI Agents for Financial Operations

Casap develops specialized AI agents that work across the software systems used by banks, credit unions, fintech companies and payment processors. Its platform handles dispute-related tasks such as gathering evidence, investigating transactions, applying institutional policies, making recommendations and communicating with consumers. The software can execute decisions within established controls and escalate cases that require human judgment. Casap says its agents resolve 73% of dispute cases through automation, with human oversight retained.

Reported Results and Leadership

With more than 100 banks, credit unions, fintech companies and processors as customers, Casap has reported up to a 51% reduction in first-party fraud losses, a 96% chargeback win rate and dispute resolution time dropping from as long as 90 days to eight. Shanthi Shanmugam, co-founder and CEO, said the company is cutting fraud losses in half while resolving disputes in days instead of months. Shanmugam spent six years at Robinhood as a senior and group product manager, helped launch Robinhood Crypto and build the company's 24/7 customer support infrastructure, and previously worked as a product manager at Meta with roles involving technology companies including Salesforce and Workday. She holds a bachelor's degree in electrical engineering and computer science from the University of California, Berkeley, and has been named to Inc.'s Female Founders 500 list.

Sources: Citybiz · Finextra