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SquareTrade delivers extended warranty services for various consumer electronics and major appliances. The company specializes in protection plans that extend coverage beyond standard manufacturer warranties, aiming to ensure product longevity and sustained functionality. It operates a comprehensive service network, designed to simplify the claims and repair processes for its customers.
Founded in 1999 by Ahmed Khaishgi and Steve Abernethy, SquareTrade arose from the insight that consumers needed reliable post-purchase protection for their valuable electronics. Khaishgi and Abernethy recognized a market demand for transparent and trustworthy plans to shield customers from unexpected repair costs and product failures. Their initiative sought to build confidence in product ownership.
SquareTrade serves individual consumers protecting their electronic devices and household appliances. The company also partners with major retailers and operators to offer its plans at the point of sale. Its mission is to help people enjoy their products for longer, supporting durability and fostering more sustainable consumption.
SquareTrade has raised $9.3M across 2 funding rounds.
SquareTrade has raised $9.3M in total across 2 funding rounds.
SquareTrade has raised $9.3M in total across 2 funding rounds.
SquareTrade's investors include Social Capital.
SquareTrade has raised $9.3M across 2 funding rounds. Most recently, it raised $9.0M Series B in April 2000.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Apr 1, 2000 | $9M Series B | — | Social Capital | Announced |
| Dec 1, 1999 | $300K Seed | — | Social Capital | Announced |
SquareTrade, now operating as Allstate Protection Plans, is a technology-driven company specializing in product protection plans for consumer electronics, smartphones, appliances, furniture, and more.[1][3][4][6] It serves both individual consumers and major retailers/mobile carriers through B2B partnerships, solving the problem of device damage or malfunction by offering hassle-free repair or replacement coverage, revolutionizing an industry previously plagued by poor service and outdated warranties.[2][4][5][6] With over 140-150 million customers worldwide, annual revenue around $664.5 million, and trust from top retailers, it has demonstrated strong growth, particularly after its 2016 acquisition by Allstate, shifting from direct-to-consumer to B2B-focused models while expanding internationally.[1][3][4][5][7]
Founded in 1999 in Brisbane, California (formerly known as Transecure), SquareTrade emerged to modernize extended warranties amid rapidly evolving consumer technology like smartphones and smart homes.[1][3][6] The idea stemmed from recognizing flaws in traditional warranties—flimsy coverage and terrible customer service—and aimed to create innovative, customer-centric protection plans.[6] Early traction built through service innovation, leading to $248 million in total funding across four rounds before its acquisition by Allstate in November 2016, which accelerated its evolution into a global insurtech leader with rebranding to Allstate Protection Plans and expanded B2B partnerships.[1][2][3]
SquareTrade rides the insurtech wave, embedding protection into e-commerce and retail amid rising device connectivity and smart home adoption, where failures demand quick, reliable fixes.[6][7] Timing aligns with post-2016 growth in B2B insurance tech, leveraging Allstate's scale to counter market forces like high repair costs and consumer distrust of warranties.[2][5] It influences the ecosystem by partnering with global retailers/carriers, driving differentiation (e.g., MediaMarkt revenue boosts), promoting sustainability via repairs over replacements, and setting standards for digital service in a fragmented $4B+ industry.[1][3][4][7]
SquareTrade's trajectory points to deeper global B2B expansion, enhanced AI-driven claims, and sustainability-focused repairs as IoT devices proliferate and consumers prioritize eco-friendly options.[6][7] Trends like embedded insurance and retailer differentiation will propel growth, evolving its influence from warranty disruptor to insurtech platform leader. This builds on its foundational revolution of a "bad" category into a trusted essential, ensuring life happens but downtime doesn't.[4][8]
