On Monday, NY-based insurance startup Clyde announced that it raised $14 million in its Series A funding round. Spark Capital led the round, with participation from Crosslink, RRE, Red Sea Ventures and several others.
Clyde works with online retailers to provide extended warranty protection programs. Buying a product with a warranty gives people a sense of confidence in their purchase and can help convince them that they’re making the right move. On the flip side, selling extended warranties is a big moneymaker for businesses, making them an estimated $50 billion per year.
E-commerce shows no signs of slowing down, and now even the smallest of businesses are expected to sell their goods online. As a result, businesses have to adjust typical retail practices to survive in an online environment. One of these practices is selling product warranties.
Clyde connects online retailers with insurance companies in order to offer their own product protection plans. The company’s platform also gives these retailers a dashboard to monitor their protection plans and provides analytical tools in order to help them learn more about how they’re being used.
The company will use this new funding to expand its capabilities and reach new retail partners. Two years since the company began, its platform is now used by more that 150 retailers.
“We’re using the funds to scale our growth and engineering teams and invest in building additional value for our retail partners. Clyde wins because we have a killer product, an amazing team and culture, and technology and partnerships that bring pricing reserved for Fortune 10 companies to the rest of retail,” Clyde CEO Brandon Gell told Built In. “Over the next year we are 100 percent focused on scaling our solution throughout retail and continuing to bring tools that make retailers stronger and brings consumers closer to those brands and their purchases.”
