Polygrade Secures $6.3M for AI-Driven Warranty Claims Automation

Polygrade, a Toronto-based InsurTech company, has officially launched its AI-driven claims software for warranty providers, securing $6.3 million in funding. This investment is set to enhance Polygrade's capabilities in automating the processes involved in handling warranty claims. The funding will specifically allow the company to expand its Forward Deployed Engineering, go-to-market, and partner enablement teams.

The InsurTech company is addressing a significant gap in the warranty claims market, where traditional systems have primarily focused on recording information and tracking progress rather than effectively resolving claims. Polygrade’s innovative platform uses AI agents across five key stages of the claims process: first notice of loss, pre-dispatch triage, authorization, parts procurement, and payment. This approach allows warranty providers to streamline their operations, reduce unnecessary costs, and improve the customer experience.

Founded in 2025, Polygrade is already collaborating with notable warranty providers, including Fidelity National Home Warranty and Cinch Home Services. The software integrates seamlessly with existing warranty systems, using data from these platforms to inform actions throughout the claims process. Early deployments have highlighted significant inefficiencies, such as excessive service calls and unnecessary parts spending, indicating that the technology can lead to reduced claims severity and lower operating costs.

Rachel Holt, co-founder and managing partner of Construct Capital, noted the unique combination of expertise among Polygrade's leadership team, which positions the company to effectively leverage AI in this under-served market. With the potential to transform the warranty claims industry, Polygrade is set to challenge the status quo and deliver substantial improvements in efficiency and cost-effectiveness.

The funding round was led by Construct Capital, with participation from American Family Ventures and Nine Four Ventures. As Polygrade continues to develop its platform, it aims to expand its services beyond home warranty to include extended warranty, OEM warranty, and equipment breakdown insurance, further broadening its market impact. The company is poised to reshape the claims process, making it faster and more informed through the application of advanced AI technology.