US-based consumer warranty service Extend received $40m in series B funding yesterday from investors including PayPal Ventures, the strategic investment arm of digital payment processor PayPal.
Meritech Capital led the round, which also featured fellow venture capital firm Great Point Ventures and investment firm Shah Capital Partners.
Extend has created a cloud software platform that streamlines the sale of warranties for consumer products. It also helps resolve warranty claims through a combination of chatbots and live customer service staff.
The series B proceeds will support the expansion of the company’s product in addition to hiring more software development and sales staff.
Jay Ganatra, partner at PayPal Ventures, said: “Merchants of all sizes can benefit from extended warranties but implementing and maintaining them has been too complex for many businesses.
“Extend shares PayPal’s commitment to providing merchants with easy to use tools that help them better connect with and support their customers. On top of that, the Extend team has seriously improved the end-user experience through its use of their conversational chatbot. We are excited to invest in Extend as it continues to redefine this space.”
GreatPoint Ventures had previously led the company’s $16.4m series A round in November 2019, investing alongside Shah Capital Partners, Pritzker Group Venture Capital, Lightbank and angel investors Rick Smith, Michael Marks, Jason Robins and Erik Torenberg.
