Two years ago, we noticed that eCommerce companies had a tough choice to make: stay independent and forgo the ability to offer benefits like extended warranties to their customers (and lose that opportunity for better margins), or join the ecosystem of an eCommerce giant as one of a million sellers and sacrifice their brand experience. Because the vast majority of eCommerce retailers were missing out on the opportunity to better serve consumers through extended warranties, we developed Clyde, a platform that has to-date given this opportunity to more than 150 retailers and tens of thousands of their customers. Today, we’re proud to announce we’ve raised $14M in a Series A to continue to dramatically improve this market, both for eCommerce companies and the people who buy their products.
This new injection of funding, led by Spark Capital with participation from Crosslink, RRE, Red Sea Ventures, Abstract Ventures, Starting Line Capital, Correlation Ventures, Jackson Gates, Brian Sugar, and other leaders in the ecommerce and fintech space will help us expand our capabilities to serve a new wave of retail partners. We believe that product protection is one of the strongest tools retailers have at their disposal to drive customer loyalty and revenue. Unfortunately, it’s a category marred by mishandling from big insurance corporations with little care for the customer experience.
Clyde’s goal is to completely reshape the warranty market — both in its accessibility for retailers and in its experience and value for consumers — through software that can be deployed in just minutes, allowing retailers to offer extended warranties that cover almost anything — from sunglasses and headphones, to snowboards and telescopes, and beyond. For retailers, it’s the ability to provide something of value to the people who purchase their products, while simultaneously adding a net-new revenue stream. For consumers, it’s the opportunity to protect their purchases at the lowest, most transparent rates. The experience for both is seamless, integrated, valuable, and easy — the antithesis of what’s typically associated with this space.
Clyde’s Impact To-Date
Clyde SKUs are often the highest-margin product that our customers sell. We’ve heard from customers that they’re able to double-down on acquiring new customers, design and build new products, or expand their social reach as a result of the additional revenue Clyde drives.
Consumers are seeing the value and enjoying the experience too: the uptake of warranty purchases averages 18 percent for retailers using Clyde — with some seeing uptake as high as 30 percent. This, compared to the industry average of just four percent, speaks volumes about the Clyde experience for the end user purchasing product protection.
Here’s what a few customers have shared about working with Clyde:
- Kate Albers, the E-Commerce Manager at Chili (a company on a mission to build the best sleep products using science), said their partnership with Clyde has "activated an additional revenue stream and allowed us to expand a new area of our business — yielding a better experience for our team and our customers.” With Clyde, Chili has reached an attachment rate of 38% on one of their products (over 5x the industry average).
- Two of our new customers, Tuft & Needle and Marshall Headphones, also weighed in on why they recently chose to partner with Clyde. Tuft & Needle Head of Customer Experience Aaron Bata shared that, “On our mission to reshape how shoppers think about sleep, we have made it our goal to put the customer at the forefront of every mattress purchase, and thus transform an industry. Clyde enables us to deliver on this goal and, in turn, further revolutionize the sleep industry.” While Marshall Headphones’ E-commerce Manager, Karla Wallace, expressed that “We chose to partner with Clyde because it’s a proven driver of brand loyalty, and it allows our customers to protect the signature sound that our products deliver.”
It’s humbling to announce this good news during a trying time for so many in our category. We know that now, more than ever, eCommerce is of the utmost importance — we’re looking the data square in the face. We’re doing what we can to tip the scales in the favor of independent retailers and brands.
Our investors bring a new wealth of experience to Clyde leadership, and we are excited to partner with them as we continue to grow our business and our team.
Brandon Gell & Team Clyde
You can read more on TechCrunch.