The oversubscribed round helps the company’s valuation hit the $1.6B mark. Here are the top-line bullets you need to know.
Extend, a technology platform that allows businesses to offer product warranties has raised $260M in a Series C with participation from SoftBank Group, Meritech Capital Partners, GreatPoint Ventures, and PayPal Ventures, among others.
How’s the company performing?
- San Francisco-based Extend provides an integrated API at the point-of-purchase that allows merchants to offer extended warranty and protection plans.
- The company witnessed a 40x revenue growth in 2020 and projects a 400% increase in 2021, owing to a strong Q1’21.
- Extend sold more than 300,000 protection plans in 2020 and expects to sell more than 3M plans in 2021.
- Extend’s merchants list includes brands like iRobot, Harman/JBL, Peloton, RealTruck, Traeger Grills, and Balsam Hill, among others.
- The company offers integrations with e-commerce platforms like Magento, BigCommerce, Shopify, and SalesForce Commerce and acts as an intermediary between merchants and insurance firms like Fortegra, AIG, and Dealers Assurance.
- Extend’s AI-enabled customer chatbot platform, Kaley, successfully handles 98% of claims in under 60 seconds.
Why does the market matter?
- The extended warranty market is projected to grow at a CAGR of 7.4% and reach a value of $169.82B by 2027, according to Allied Market Research.
- Well-informed customers, the economic impact of Covid-19, and the need for merchants to deliver a better customer experience have all contributed to the industry’s growth.