Insurtech Startup Clyde Raises $41M, Eyes Market Expansion
Clyde, an insurtech startup based in NYC, just announced it raised $41 million in fresh capital. Led by global VC firm Headline, the round includes $25 million in Series B funding and $16 million in working capital, and will be used to further the startup’s mission of improving customer loyalty in the e-commerce space.
Launched in 2018, Clyde partners with online retailers to offer extended warranty protection programs to their customers, providing shoppers with an added sense of confidence when they purchase a product. Meanwhile, selling extended warranties is a lucrative business, expected to be worth nearly $170 billion by 2027, and gives retailers a way to maintain a relationship with their customers well after the initial purchase.
In the end, Clyde is disrupting a space that founder and CEO Brandon Gell says has “failed to live up to its potential” up to this point — providing an extended warranty policy product that makes both merchants and their customers happy.
“Our platform fills an inherent gap in the product life cycle, where the purchase and the post-purchase experience are disconnected,” he explained in an email to Built In. “We’re excited to connect the dots and solve this major pain point for both merchants and consumers.”
Of course, this news is coming at a time of massive growth for e-commerce at large. The industry was estimated to be worth more than $430 billion in 2020 and shows no signs of slowing down, with even the smallest businesses moving partially or completely online. And Clyde has been growing right along with it. The last time Built In caught up with the startup in May of 2020, it had about 150 customers. These days it works with more than 300 brands, including rapidly rising stars like Ergatta and Hydrow.
To keep up, Clyde will use this fresh funding to further innovate its product, expand into new markets and categories and scale internationally. Also, Gell added that Clyde plans to increase its headcount to 100 people by the end of this year, and will be moving into a larger office space here in NYC next month to accommodate its growing team.
“From the inception of Clyde, it’s always been our goal to become a complete product lifecycle platform — and we’re thrilled that the funding will enable us to execute on this vision,” Gell said. “With the right tools under our belt now, we’ll continue to build on our success as we reshape what it means for merchants to connect with consumers throughout a product’s lifecycle so that they can maximize the longevity of their customer relationships.”