Onsitego, a Mumbai-based extended warranty and device protection services provider, has raised capital from IFC in an extension to its Series B investment round, closing it at $30 Mn. The first tranche of $19 Mn was raised in February, led by Zodius with participation from existing backer Accel Partners.
The fund will be utilized for consolidating its market position in the after-sales services industry, and strengthening its consumer offerings like annual maintenance contract (AMC), home protection and on-demand services, the company said in a press statement.
IFC is also a member of the World Bank Group.
“IFC brings in a strong global footprint and expertise of investments in fintech which is valuable as we scale our business by expanding new business lines like AMCs, home warranty, doorstep repair services, new distribution channels and in other emerging markets,” said Kunal Mahipal, founder and CEO, Onsitego.
Avendus Capital was the exclusive financial advisor to Onsitego on this transaction.
The after-sales service industry in India is fragmented and suffers from quality issues like lack of transparency and time-bound service delivery. Onsitego aims to plugs these gaps with its focus on customer service by leveraging a pan-India network of brand-authorized service centers with its technology platform and direct integrations with distribution and service partners.
The startup works in collaboration with online and offline electronics and appliance retailers in India like Croma, Vijay Sales, Amazon as well as consumer finance players like HDB Financial Services to offer their extended warranty and damage protection plans.
“India is one of the largest and fastest-growing appliances and consumer electronics (ACE) markets globally and the ACE protection market is significantly underdeveloped. There is a clear market need for innovative and customer-service-focused players like Onsitego to drive growth in this market,” said Jun Zhang, country head India, IFC.
Varun Gupta, Director, Digital and Technology, Investment Banking at Avendus Capital said, “IFC’s investment in the Company will further support product and distribution expansion.”
The startup was founded by IIM-Bengaluru alumni Kunal Mahipal in 2010. Onsitego works with both offline and online retailers, providing an extended warranty on gadgets, home appliances, and various other consumer durables.
To get an extended warranty, users just have to select a category of the product, select a price range and buy a plan. Onsitego claims to have over 5 Mn users and more than 300 brands. The company also assures that it offers free pick and drop service, at home service, zero paper way and high-quality repair.