Investments

Upsie Raises $5M For Revamped Warranty Program

Warranty service company Upsie has raised $5 million in new funding, led by True Ventures. Techstars Ventures, Matchstick Ventures, The Syndicate Fund, M25 and angel investor Marc Belton also participated in the round. Minneapolis, MN-based Upsie will use the new funding to revamp its service, which aims to offer warranties for 70 percent less than retailers typically do.

“If you buy a product worth $900, a warranty might cost an extra $130, but that warranty might cost only $10 from the insurance company,” said Clarence Bethea, CEO and founder of Upsie, according to reports.

“Consumers don’t know what the warranties actually cost,” he added. “That’s what pushed me into this.”

In addition, the company provides more flexible options for ordering, tracking and claiming against warranties, which is a $40 billion annual market. Customers can use Upsie to purchase warranties up to 60 days after they buy a product (45 days for smartphones). While the product needs a minimum 90-day warranty from the manufacturer, the Upsie warranty takes effect 30 days after it’s purchased — right after the manufacturer warranty ends.

The warranties can be purchased online or through an app, covering products in 15 categories, including computers, wearables, phones, TVs, small and large appliances, and outdoor tools.

“Upsie is the only consumer-facing brand in the space, whereas everyone else is more of a back-end provider,” said Puneet Agarwal, a partner at True Ventures. “Their subscriber growth and engagement are tremendous, and the end consumer identifies with them. Because of their direct consumer focus, they also offer a level of pricing, convenience and customer service the industry has not seen.”

Since launching in beta in 2016, Bethea revealed that the company has grown 300 percent each year. Though services are live only in the U.S., the company has plans to expand into international markets, and add auto warranties to its list of available services.

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