Insurance tech startup Clyde today announced it has raised $3 million to reinvent the way companies offer product warranties to customers.
Clyde, which bills itself as “Stripe for warranties,” has built an API for merchants that allows them to plug into the system and add product guarantee options without having to create the programs from scratch.
“We’re the first company taking a retailer-centric rather than an insurer-centric approach to the warranty space — that’s why we’re seeing businesses large and small partnering with Clyde and why Fortune 500 retailers and insurers are reaching out to discuss integrating,” said Clyde cofounder and CEO Brandon Gell in a statement.
The company was founded last year by Gell, Josh Scaglione, Nick Scaglione, and Jereme Holiman. The idea emerged after Gell experienced the frustration of trying to create a warranty program at a previous company, a process that took months.
As a result, Clyde is essentially plug-and-play. Merchants can use Clyde’s plug-in on their point-of-sale or ecommerce platforms to add warranty services in just a few minutes. Businesses can integrate insurers, define administrators, and manage the programs via a dashboard.
The funding comes just as Clyde has finished a stint at Techstars Chicago. The round was led by Red Sea Ventures, with participants including RRE Ventures, Expa, Starting Line, and Rainfall Ventures.
“Clyde’s focus on data, ease of use, and insurer marketplace is re-imaging the warranty industry from the bottom up,” said Paul Strachman, partner at Red Sea Ventures, in a statement.