Upsie

Upsie operates as a direct-to-consumer platform, providing extended warranty and accidental damage protection plans for a wide array of consumer electronics and appliances. The company was founded in 2013 by Clarence Bethea and is headquartered in Saint Paul, Minnesota. Bethea's journey to entrepreneurship was unconventional; growing up in difficult circumstances in Atlanta, his early life experiences fostered a resilience that he later applied to the business world. Before launching Upsie, he founded 2nd Chance Staffing, a firm that connected low-risk offenders with employment opportunities, demonstrating an early commitment to creating businesses with a social conscience. The inspiration for Upsie came from a desire to challenge the traditional, often opaque, and expensive warranty industry.

The company's business model is centered on offering more affordable and transparent warranty options directly to consumers via its website and mobile app, bypassing the significant markups often found at retail points of sale. By cutting out the retailer, Upsie can offer plans at prices up to 70% lower than its competitors. The platform's revenue is generated directly from the sale of these protection plans. Upsie serves consumers who have purchased items like smartphones, laptops, gaming consoles, major appliances, and fitness equipment, allowing them to buy a protection plan up to four years after the product purchase for most electronics. This model provides consumers with the flexibility to research and compare options without the pressure of an immediate decision at checkout. Key features include a digital repository for receipts to simplify the claims process, clear terms, and a 24/7 claims center. In April 2024, Upsie was acquired by AKKO, another device insurance provider, in a move to integrate Upsie's extensive independent repair network and customer base.

The company has achieved significant milestones, including completing the Techstars Retail accelerator program and raising approximately $26.7 million in funding over several rounds. A major Series A funding round in 2021, led by True Ventures, secured $18.2 million, which was aimed at expanding the team and marketing efforts. Bethea's story of overcoming personal hardship and racial discrimination in the tech industry has been a notable part of the company's narrative. After leading Upsie as CEO, he became an investor at True Ventures, where he now works to support other underrepresented founders.

Keywords: extended warranty, consumer electronics, insurtech, direct-to-consumer, appliance protection, product protection, mobile app, claims management, device insurance, repair network