We’ve all been there. You spend an insane amount of money on a product like a smart phone or tv, just to be inundated with an additional warrantee cost. One Minnesota based founder is on a mission to change that and just might do it after a massive funding round.
Clarence Bethea is the CEO of Upsie, a company specializing in offering warranties at a lower rate than the obscene amount most consumers pay and allows them to bypass going through retailers to purchase it.
Here’s how it works: Upsie allows consumers to purchase a warranty 60 days after they buy a product. Since most companies have 90 day warranties from manufacturers, the cheaper Upsie warrantee would kick in when the factory warrantee ends. Users can also also store receipts and file claims. All of this is done through the Upsie app.
“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,” Bethea told Techcrunch.
According to Techcrunch, the market for warranties is around $40 billion, so Upsie is disrupting the industry at an opportune time. Upsie hopes that it’s cheaper service will empower consumers to step outside of the normal realm of going through retailers.
Upsie is currently only available in the US and plans to expand its services internationally. It covers hundreds of consumer electronics and has plans to offer auto warranties in the future.
The company’s most recent round was led by True Ventures and also included funding from U.S Techstars Ventures, Matchstick Ventures, Syndicate Fund, and M25.