Austin-based insurtech startup Chaiz, the first comparison marketplace for extended car warranties oversubscribed $3.7 mn seed funding round led by ResilienceVC.
Anker Capital, Automotive Ventures, Everywhere Ventures, FJ Labs, Monte Carlo Capital, Never Lift Ventures, RedBlue Capital, and Springtime Ventures also participated.
Previous investors include Everywhere VC, InsureTech N, The Calm Fund, and Project One Auto, a nationwide auto dealership.
Chaiz is poised to revolutionize the $40 bn vehicle service contract industry, which has been long plagued by spam and robocalls.
Unlike traditional providers, Chaiz allows users to get quotes in minutes without submitting a phone number or email address, ensuring privacy and a hassle-free experience. This user-centric approach addresses a critical pain point in the industry, offering transparency and choice to consumers.
Founded by industry veterans Ryan Hartman, Philippe Koenig, and Reto Bolliger, Chaiz brings transparency and choice to the extended car warranty market, protecting consumers from unexpected repair bills without intrusive industry practices.
With the average age of vehicles on U.S. roads reaching a record 12.6 years and the most common check engine light repair costing over $1,300, the need for high-quality, affordable, and reliable extended car warranties has never been greater.
Chaiz empowers consumers to make informed decisions, potentially saving them significant amounts on repair costs.
We believe everyone should have breakdown protection for their car after their factory warranty expires
Ryan Hartman, Co-Founder and CMO of Chaiz
“Historically, this product has been marketed unethically with unnecessarily high prices. We’ve changed that. Using Chaiz, users can get transparent prices, research several providers, and buy online hassle-free once they find the perfect plan for their vehicle and budget,” said Ryan Hartman.
With new funding, Chaiz will innovate in breakdown protection and expand coverage for RVs, motorsports, and home appliances.
By using an online approach, Chaiz cuts out middlemen like car dealerships and call centers, saving customers 40%.
ResilienceVC supports high-growth businesses that enhance financial resilience for Americans. Chaiz helps customers understand options and coverages, compare offerings, and buy vehicle warranties at more affordable prices
Tahira Dosani, Managing Partner at ResilienceVC
“This reduces repair costs and provides income stability for many Americans who can’t afford unexpected car repairs,” said Tahira Dosani. “Chaiz’s customer-centric approach, strong distribution partnerships, and product innovation position it for significant growth. We’re excited to lead their seed round and support their journey.”
In 2023, Chaiz raised $1 mn pre-seed funding, a testament to the market’s belief in the need to bring transparency and fair pricing to the extended car warranty industry.
Chaiz is the first and only online comparison site for extended auto warranties where consumers can research, shop, compare and buy digitally.
Chaiz matches consumers directly with providers which cuts out a lot of unnecessary and costly markups, saving their customers up to $1,700 versus call centers and car dealerships. This is needed now more than ever since two out of three Americans are currently unable to afford a $1k car repair.
