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Upsie CEO Clarence Bethea has announced that his startup has raised $5 million led by True Ventures to scale their business in the U.S.
Warranties for purchased products is a $40 billion annual market. But in their current form, they are considered by some to be one of the bigger scams in the world of retail because they cost so much and often return too little.
Now there is an alternative emerging. A startup out of Minneapolis, Minn. called Upsie has decided to wage war on the old warranty, with more reasonable pricing (typically 70% lower than what the retailer offers) and a much more modern approach to selling and managing the warranty.
Its bet is that lower prices, and more flexible options for ordering, tracking and claiming against warranties, will drive more users to its service and take some business away from the retailers that largely dominate the market today. Today it’s announcing that it has raised $5 million led by True Ventures to build out that business in the U.S. Techstars Ventures, Matchstick Ventures, Syndicate Fund, M25 and angel investor Marc Belton also participated.
If you’ve ever purchased an expensive consumer electronics product, you know the problem that Upsie is tackling: warranties can cost a lot, and in many cases you’re not sure what you might even be getting out of it. And if you do find yourself in the unfortunate predicament of needing to file a claim, you may find the process a little less than efficient, but hopefully not as bad as this:
“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, the CEO and founder of Upsie.
Read the rest of the story here.
Main Image: Clarence Bethea, the CEO and founder of Upsie