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Contxto – If you have ever endured through an inordinately delayed flight or even lost luggage, you may be eligible for airline compensation. Resolvvi is a Brazilian startup lending a hand in this process.
A few days ago, the legaltech raised R$2.2 million (approximately US$530,000) from DOMO Invest, GVAngels and Bossa Nova Investimentos. According to Resolvvi in a recent statement, the round “represents a combination of capital with a strong knowledge of B2C and B2B business.”
“We see that in addition to the value itself, we have much to gain from the entry of these three new players into our company,” said CEO Bruno Arruda, who intends to expand the Resolvvi’s engineering team. Other plans involve specializig in more legal topics for 2020.
”We want to finish this year by confirming ourselves as the national leaders in our market.”
For Rodrigo Borges, a partner at DOMO Invest, Resolvvi has developed a strong tech platform improving the entire claims process.
“The technological efficiency of the platform used by the startup is evident,” said Borges. “Therefore, we decided to embark on this challenge by providing capital, knowledge and networking. After all, the airline industry is still hot in Brazil and tends to grow even more with the arrival of international players.”
Market demand meets competition
According to the National Civil Aviation Agency in Brazil, the country handles approximately 112,000 canceled flights every year. In total, this affects over 12.1 million consumers annually, which certainly creates an extensive market segment.
Since 2017, Resolvvi has streamlined the compensation process for delayed, canceled, overbooked and lost luggage cases. With everything administered online, users simply need to upload a copy of the flight ticket to open a case.
As part of Resolvvi’s business model, clients only pay the company if the case succeeds in court. When this happens, consumers then give the processing rights to the startup, meaning that it will negotiate retribution from the airline on the customer’s behalf.
In the process, airlines reportedly avoid legal liabilities and potential bigger problems by working with the startup as an intermediary.
Just in Brazil alone, there are other legaltechs offering rather similar services and solutions. Perhaps Resolvvi’s biggest competitor is Liberfly. Not only are both vying for the same market segment but both accrue the costs of failed cases.
Regardless of the potentially risky business models, these two legaltechs are doing seemingly well. Launched in 2016, Liberfly has reportedly solved 3,000 cases with a 98 percent success rate. For clients, this means rewards ranging between approximately US$1,200 and US$2,400
With Resolvvi, the startup charges a 30 percent compensation fee if cases go through the courts. While it started a year after Liberlfy, it has solved 950 cases with a 98 percent success rate, receiving over US$890,500 worth of damages.