Devolut, a startup focused on streamlining the returns process for online sellers in Latin America, has secured USD $600,000 in a pre-seed financing round. Various investment firms, including Seedstars International Ventures and FJ Labs, back the initiative.
The company aims to simplify returns in the ecommerce sector by eliminating the need for boxes and labels while reducing sellers’ costs. Devolut employs software that automates these tasks and anticipates saving up to 50% in return handling expenses.
According to the online macro survey Global Consumer Survey by Statista, in Brazil and Mexico, the online return rate is 31% of the total respondents, with clothing and footwear being the items most commonly returned.
In this context, Latin America presents a growing ecommerce market, with projections estimating a USD $550 billion value by 2028. The return rate for the entire region is expected to reach 15% in the coming years. Devolut aims to provide a more efficient process that caters to the rising e-commerce trend and changing consumer protection laws.
Devolut’s founders have industry experience, having faced the challenges of the return process in a previous logistics startup. With the new capital, the startup plans to enhance its AI-driven algorithm, which provides product recommendations to turn negative consumer experiences into new sales opportunities.
Additionally, the company is preparing to implement ‘City Points‘ to facilitate more convenient returns. They also plan to use technology to assess the condition of returned products to offer quicker refunds.
Konstantin Hapkemeyer from Seedstars International Ventures sees Devolut as an opportunity to improve the post-purchase experience in the Latin American ecommerce market. Similarly, Maia Benson from Forum Ventures and Ian Hathaway from Far Out Ventures emphasize Devolut’s role as a key element for growth and confidence in the e-commerce sector.
In a constantly growing market like Latin American e-commerce, solutions like Devolut significantly optimize the post-purchase experience. With its new capital injection, the startup is a significant player in the region’s e-commerce evolution.