Miami-based FlexFactor, a cutting-edge provider of decline recovery solutions for eCommerce brands, has announced the successful completion of its $16.8 million Series A funding round. The round was led by Bessemer Venture Partners, with additional participation from seed investors.
FlexFactor is advancing payment recovery, turning false declines into real sales using AI. Our platform analyzes hundreds of data points to reverse failed transactions in real-time, providing a 5% average lift in sales for ecommerce merchants. We cover all decline codes for both ecommerce and subscription transactions, at no risk to merchants and no cost to customers.
Global eCommerce sales now exceed $5 trillion annually, yet one challenge continues to undermine merchant success: failed payments at checkout. With more than $500 billion lost annually in the U.S. alone due to failed payments and cart abandonment, these declines translate into lost revenue, missed customer engagement opportunities, and lower customer lifetime value (LTV). The average merchant experiences a 10-15% decline rate, presenting a substantial opportunity for innovation. FlexFactor aims to turn these declines into successful orders and lasting customer relationships with its proprietary AI-powered platform.
Zeev Shoval, Co-Founder & Chief Commercial Officer
Ze’ev Shoval, FlexFactor’s CCO and Co-Founder, emphasized the company’s impact on the eCommerce landscape, noting, “Businesses engaged with us are driving 5% more top-line revenue by saving legitimate customers who would otherwise be turned away at checkout. Lost customers have lower LTV and are less likely to return.”
By instantly evaluating and rescuing failed transactions across all decline reasons, including insufficient funds, FlexFactor offers a recovery rate of up to 30%—significantly outperforming traditional eCommerce norms. FlexFactor’s comprehensive solution supports both eCommerce and subscription orders, helping brands convert 5% more customers at checkout, which directly results in a 5% increase in revenue. Over time, brands using FlexFactor also see an additional 3-5% revenue uplift as they foster stronger consumer relationships.
Elio Vitucci, FlexFactor Co-Founder & CEO
FlexFactor CEO and Co-Founder Elio Vitucci expressed excitement about the partnership with Bessemer Venture Partners, saying, “The new funding will further our R&D efforts while expanding global operations with sales and support. We are poised to rapidly expand in our focus markets as we redefine the possibilities of decline recovery, addressing the unmet needs of merchants everywhere.”
Bessemer Venture Partners helps entrepreneurs lay strong foundations to build and forge long-standing companies. With more than 145 IPOs and 300 portfolio companies in the enterprise, consumer and healthcare spaces, Bessemer supports founders and CEOs from their early days through every stage of growth. Bessemer’s global portfolio has included Pinterest, Shopify, Twilio, Yelp, LinkedIn, PagerDuty, DocuSign, Wix, Fiverr, and Toast and has more than $18 billion of assets under management.
With this latest infusion of capital, FlexFactor is set to redefine the future of decline recovery in the global eCommerce market. The company aims to continue its mission of helping merchants convert failed payments into successful transactions, unlocking new revenue opportunities and strengthening customer loyalty in the process. As FlexFactor moves forward, the focus remains on scaling its innovative technology to meet the needs of eCommerce brands worldwide, driving the industry toward a future where payment declines no longer hinder business growth.
Charles Birnbaum, Partner at Bessemer Venture Partners
“Payment declines are perhaps the largest, yet most unresolved problem in payments,” said Charles Birnbaum, partner at Bessemer Venture Partners. “Elio and Ze’ev bring decades of experience in data science, credit risk, and underwriting to address the well-known problem of failed customer transaction attempts across all decline types in real time. The team has already delivered tremendous impact for their early customers, and we look forward to the company’s global expansion.”
To learn more about FlexFactor, visit www.flexfactor.io