US-based extended warranty provider Extend secured $260m in a series C round led by internet and telecoms group SoftBank’s Vision Fund 2 yesterday, valuing the business at $1.6bn.
The round also featured payment processing firm PayPal’s corporate venturing arm PayPal Ventures and insurance firm Nationwide, as well as Meritech Capital Partners, GreatPoint Ventures, Tomales Bay Capital, Launchpad Capital, 10X Capital and 40North.
Extend uses artificial intelligence technology and a proprietary insurance stack to sell product protection plans for merchants and consumers. The money will go towards recruitment, new product development and market growth.
Nagraj Kashyap, managing partner at SoftBank Investment Advisers, said: “As more consumers shop online, merchants are keen to provide customers with a greater peace of mind when making purchases.
“We believe Extend is reinventing the extended warranty industry through its leading platform, API solutions, and consumer-first approach.
“We are pleased to work with Woody and the Extend team to support their ambition of providing a better way for consumers to protect the products they love.”
PayPal Ventures previously backed a $40m series B round for Extend in October 2020. The round was led by Meritech Capital and also included Great Point Ventures and Shah Capital Partners.
GreatPoint Ventures had led a $16.4m series A round in 2019, investing alongside Shah Capital Partners, Pritzker Group Venture Capital, Lightbank and assorted private investors.
