Bulgaria's ClaimCompass, a platform that helps airline passengers file compensation claims for delayed or canceled flights, has been acquired by German market leader AirHelp.
Since 2016 ClaimCompass, founded by Tatiana Mitkova, Velizar Shulev and Alexander Sumin, has handled over 500,000 customer claims amounting to more than 100 million dollars in compensation. The company's primary markets include the UK, Bulgaria, the US, Romania and Germany. AirHelp, operating since 2013, employs a 400-strong team and serves clients across the US, Canada, Brazil and Asia.
The sale price and future plans for ClaimCompass's team will not be publicly disclosed, according to the founders of the Bulgarian company, which acquired US-based claims app Service in 2020. ClaimCompass's website indicates that all activities are being redirected to AirHelp's platform and clients with active claims can still contact the company via email.
Shared vision
Both ClaimCompass and AirHelp are driven by the same goal: helping passengers receive compensation based on a 2004 European regulation mandating airlines to compensate travelers for flight delays or cancellations.Although the law allows passengers to directly pursue claims with airlines, many lack the knowledge, patience or resources to engage in lengthy legal battles, hire attorneys or dedicate additional time.
"We've been in contact with AirHelp almost since our company's inception," says Alexander Sumin. "Over the years, we've exchanged expertise, explored partnership opportunities and discussed strategies for tackling airlines and jurisdictions where enforcing the regulation is more challenging. We also brainstormed ways to grow the market," he adds.
The idea of acquisition first emerged during the COVID-19 pandemic. At that time ClaimCompass had just acquired the Service app, hoping to gain traction in the American market, which delayed any immediate decisions about a merger.
A failed flight to the US market
By 2020 ClaimCompass was experiencing rapid growth. In 2017 the company reported revenue of 386,000 levs, which grew to over 1.1 million levs (562,400 euro) the following year. The pre-pandemic 2019 ended with revenues of 1.6 million levs. ClaimCompass also secured 1.3 million dollars in venture capital and angel investments to enhance its claim processing technology, aiming to outpace competitors in a growing market.
In 2020 the company purchased the Service app for digital claims processing, creating a foothold in the US through a registered entity and a subsidiary. Despite integrating the new claims processing mechanism later that year, the company failed to capture the anticipated market demand due to the drastic reduction in travel during the lockdown.
"Our strategy was to expand by serving both the US and European markets while building a product focused on long-term customer retention. Acquiring Service accelerated this vision but slow travel recovery and costly infrastructure made sustaining and scaling this model very challenging without significant external investment," Sumin explains.
When the expected growth failed to materialize, merging with AirHelp began to appear as the logical next step. By 2022 and 2023, ClaimCompass's revenue had stabilized, returning to pre-pandemic levels, which attracted multiple acquisition offers.
"Our stance has always been that direct competition doesn't make sense - this reflects the current state of the market, crowded with hundreds of copycat services that have emerged over the years, even at a local level," says Sumin. "We share a common vision with AirHelp regarding the passenger compensation and rights market," he adds.
Bulgaria's ClaimCompass, a platform that helps airline passengers file compensation claims for delayed or canceled flights, has been acquired by German market leader AirHelp.
Since 2016 ClaimCompass, founded by Tatiana Mitkova, Velizar Shulev and Alexander Sumin, has handled over 500,000 customer claims amounting to more than 100 million dollars in compensation. The company's primary markets include the UK, Bulgaria, the US, Romania and Germany. AirHelp, operating since 2013, employs a 400-strong team and serves clients across the US, Canada, Brazil and Asia.
