Seel raises $17 million

Seel has recently announced a $17 million Series A funding round, bringing its total funding to $23.6 million.

The San Francisco-based company, founded in 2019, offers insurance for e-commerce companies to protect against the risk of product returns. “For a nominal fee, consumers can purchase a generous return policy from Seel during checkout. If customers end up returning the product, Seel refunds the purchase price directly to them — retailers pay nothing.”

The company employs about 25 people and has grown from zero to over 100 customers in just four months following a major pivot as the startup was formerly known as Kover, an income protection offering to the gig economy.

Bottom Line: The company is looking to make a name for itself by building a new category of insurance around high-frequency, low-severity (HFLS) risks which may be an easy pill to swallow for a few bucks but that’s where the buying ends and the selling begins.