NASDAQ:RZLV
Rezolve AI (NASDAQ:RZLV) is a newly public startup providing a B2B mobile eCommerce SaaS platform created from scratch that uses generative AI to provide improved search, checkout, and support. It was founded in 2016, is based in London, and has 57 employees and contractors located primarily in the UK and India. It has its own large language model (LLM) but has applied it specifically to the retail and eCommerce verticals to make integrating AI easier for its B2B eCommerce customers. It believes it has the only LLM that eliminates hallucinations and prevents incorrect information from being created. In the past, the company had a thriving business in China and had reached a $120 million revenue run rate through its partnership with China UnionPay. It divested that business to be able to list on NASDAQ and is now selling to customers outside of China. It has minimal revenue but expects to be launching in Q4 with some large customers which include Grupo Carso‘s Claro Shop (10,000 merchant stores and 10 million users), and Mercado Libre T1 Commercios (a major eCommerce platform in Mexico.) It has partnered with several large companies including Adobe Magenta, Fiserv, and ACI for sales distribution which themselves have thousands of enterprise customers.
Rezolve AI began trading on NASDAQ on August 16th under the ticker symbol “RZLV.” It currently has 173 million shares outstanding and is valued at a market cap and enterprise value of $1.5 billion. As of December 31, 2023, it had no cash and $44.8 million in debt. It expects to raise capital in September to support its cash burn which is currently at $600,000 a month and fund the launch and rollout of its current platform. In 2023, it had $145,000 in revenues as it was generating revenues from pilots, but expects to be at a $100 million revenue run rate by the end of 2025 based on its funding plan. There has been no update of financials since the end of 2023, and we expect that the company will begin to report sometime in 2025 as of December 31, 2024. Given that revenue forecast, management believes the company is under-valued versus its peers as shown in the table below.
Rezolve AI Offers Three Main Products
The Rezolve SaaS platform is divided into three product lines by application. Within these three, there are also separate modules that can or need not be deployed depending on the customer’s needs.
BRAiN commerce
Legacy eCommerce platforms have a lot of pain points that can be drastically improved by the AI-based technology offered by Rezolve. The first is addressed by its BRAiN commerce product that revolutionizes the search function on a website or mobile app. Currently, a search is conducted by narrowing down an item. For example, first is to search for a product then: color, size, fit, brand, price, popularity, etc. in no particular order. It is arduous if not disheartening and time-consuming with varied results. BRAiN commerce instead uses AI to search SKUs on a site to come up with a match. Instead of searching “dress”, “formal”, “black”, “under $200”, and “size 6” and hoping to find something suitable, BRAiN commerce allows, “Find a black dress in a size 6 that I can wear to an evening wedding in August that costs under $200” skipping all the other steps. We believe AI can revolutionize shopping and search and put eCommerce on a more level playing field with in-store shopping than ever before.
BRAiN checkout
BRAiN checkout is comprised of several applications that are capable of increasing sales via all channels.
• Location uses GeoZone fences to push ads and promotions with precise targeting based on a customer’s location.
• Scan uses smart codes to provide one-click checkout, and invisible watermarks can aid in identifying counterfeits.
• Instant Checkout allows one-click checkout
• Listen creates hidden watermarks in an audio stream. They can either trigger an ad to show on a phone that hears it or a purchase button to easily buy the product promoted by the audio.
• Smartlinks (dynamic URLs) can be embedded in social media, emails, or SMS to take readers directly to specific content or a product.
BRAiN assistant
BRAiN assistant takes care of customer support and help desk as well as helping to create form letters, emails, templates, and draft documents. To date, customer support has been one application that uses AI which has resulted in a big ROI for companies. Rezolve has a robust solution that supports eCommerce customers through their mobile apps. Often problems can be solved conversationally without human intervention. Something such as “How do I return the dress I bought?” or “How much does it cost to add a line to my phone plan?” can be solved easily by AI and provide labor savings for merchants and service providers. Below we show Rezolve’s annual pricing for an enterprise customer which starts at $249.90 per year for two seats. There is also monthly enterprise pricing and pricing for individuals that start with a free limited-use version.
Management Has Decades of International Experience to Rapidly Grow Rezolve
Contrary to most start-ups, Rezolve already has spent $120 million on development, has a functioning platform, and had a large international business. It has chosen to start over from the beginning with new customers in new geographies. Leading this business is highly experienced senior management that has already founded, grown, and managed public companies for decades. The Chairman and CEO is the well-known British tech entrepreneur Dan Wagner who has founded and sold several public companies. Its CFO and CTO, as well as much of its senior management, have over 20 years of experience at major companies.
What’s Next for Rezolve?
Now that it is finally public after major delays, Rezolve AI can proceed with its plans to roll out to new customers who are in the pipeline and some of whom already are signed. To achieve this, it needs to raise capital which is on track for Q4 2024 and possibly even in September. We expect the company to continue to build out its platform as customers request new features. More importantly, we expect BRAiN Assistant to continue to be expanded with image and video capture. While shopping, consumers will have conversations with the assistants in choosing products and the assistants should be able to learn and adapt to more sophisticated queries beyond just absorbing a product description as its experience grows. According to the McKinsey Global Institute, the market for generative AI solutions sold B2B is currently $70-140 billion and is expected to grow 50% per year for the next four years. With a TAM that large, and a robust suite Rezolve AI could reach its revenue goals and beyond. We are just at the start of Rezolve as a public company and investors may want to keep a close eye on its progress as it is one of the few currently listed on NASDAQ with its own LLM.
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