Chargeback management company Justt raised a $30 million investment to bolster its platform powered by artificial intelligence.
A press release published last Thursday, December 19, contains information according to which, after the Series C financing round, the total funding received by the mentioned firm will reach $100 million. An appropriate financial base will allow the company to expand its operations in high-growing regions. It is worth noting that the firm aims to achieve profitability by 2027.
The press release noted that after receiving the investment, the company will improve its platform, which is based on artificial intelligence and analyzes more than 500 data points from several sources. In this case, machine intelligence generates tailored high-quality arguments for each case. Within the framework of the corresponding dynamic system, machine learning is used to optimize dispute win rates and continuously improve outcomes over time.
The previous time Justt raised funds was in 2021. Since then, and through 2023, the company’s revenue has tripled. In the current year, the corresponding indicator has doubled. This information is contained in the press release.
Since the beginning of the current year, the company has been able to almost double the total amount of chargebacks that it has managed, compared to the figure for 2023. Also in 2024, merchants who use the platform of the firm receive on average almost twice as much revenue.
Justt chief executive officer and co-founder Ofir Tahor stated that the funding received by the company will contribute to its global expansion, technological advancements, and further implementation of the mission to help merchants more effectively resolve payment disputes and recover more earnings.
Industry experience shows that the mentioned disputes can be a very sensitive issue for merchants and consumers. In the United States, between October 2023 and October of the current year, unforeseen charges became a negative fact of their personal financial reality for 30% of consumers. The relevant charges may include outright fraud or some degree of ambiguity. For example, a cardholder may not recognize the charge amount or merchant. Clarifying such credit card charges can be a tool to prevent disputes.
Cardholders who initiated a charge dispute because of unclear charges reported that they were less satisfied with its resolution. At the same time, 29% of them were not satisfied at all. The confusion in this case is directly related to the dissatisfaction shown by the cardholder regarding how the dispute was handled.
At the same time, it is noteworthy that the majority of consumers intend to continue to leverage the card they initiated the dispute with.
It is an objective, but at the same time somewhat paradoxical circumstance that the mentioned disputes generate an opportunity for financial institutions to increase customer loyalty. Chargebacks cost merchants about $54.5 billion per year. The complexity associated with the mentioned transactions ranges from genuine disputes with consumers to cases of so-called friendly fraud when shoppers initiate chargebacks for transactions authorized by them.
As we have reported earlier, Mynt Raises $23 Million.
