Bilt Rewards Secures $60M Funding to Boost Rent-Based Credit Card Benefits

Bilt Rewards Secures $60 Million in Growth Funding

Bilt Rewards, a loyalty initiative designed for renters, enabling them to accumulate points on rent payments without incurring any fees and fostering a pathway to homeownership, revealed on Tuesday the completion of a $60 million growth funding round. This investment establishes the company’s valuation at $350 million.

Investment Details and Key Backers

The capital infusion originates from Wells Fargo and Mastercard, alongside a consortium of prominent real estate entities. These include The Blackstone Group, AvalonBay Communities, Douglas Elliman, Equity Residential, GID-Windsor Communities, LENx, The Moinian Group, Morgan Properties, Starwood Capital Group, and Related.

Program Launch and Expansion

Bilt was initially launched in June, stemming from Kairos, the startup studio spearheaded by Ankur Jain. The program’s focus is on empowering the over 109 million renters in the United States to earn rewards on their monthly rent – a typically substantial expense.

Since its inception, the program has been implemented across more than 2 million rental units, as reported by Jain to TechCrunch.

Industry Firsts and Unique Offerings

“We represent the inaugural alliance of major property owners to establish a program of this nature, already encompassing 15 of the top 20 owners,” Jain stated. “Furthermore, we are the sole co-branded card offering points specifically for rent payments.”

Landlord Perspective: GID’s Experience

Greg Bates, President and CEO of GID, noted that his company manages 40,000 apartment units across 130 properties in the nation’s leading 20 markets. He discovered Bilt through a peer’s recommendation following a proptech conference where Jain showcased the Bilt card.

Renters have consistently sought the convenience of paying rent with credit cards to benefit from loyalty programs, a practice historically hindered by the associated surcharges added to rental rates – until the advent of Bilt, according to Bates. He described the card as “incredibly easy to use” and seamlessly integrated with existing property owner payment systems.

Transformative Value Proposition

“Bilt has fundamentally altered the benefits for renters desiring credit card usage and for landlords willing to accept it,” Bates added. “While obstacles to entry will inevitably exist for products like this, Bilt’s collaborative efforts with Mastercard and Wells Fargo have yielded a distinctive product poised to be a competitive advantage for the coming years.”

Enhanced Benefits and Mastercard Upgrades

Alongside the new funding, Bilt is unveiling enhanced benefits for its loyalty program members and upgraded features for the Bilt Mastercard. These include the potential to earn up to 50,000 points annually on rent and unlimited points through credit card transactions.

Loyalty Program Enhancements

Bilt will now provide interest accrual in the form of points on members’ accounts monthly, calculated based on their average daily points balance over a 30-day period. A concierge service will also be available for members redeeming Bilt points towards a home down payment. Additionally, members can accrue bonus points on top of those offered by landlords for new leases and renewals.

Mortgage Approval and Credit Building

Bilt collaborated with regulatory bodies, Fannie Mae, and the Department of Housing and Urban Development to secure approval for utilizing rewards points towards a mortgage. Renters can also report their rental payments to credit bureaus at no cost, aiding in the establishment of credit history.

Bilt Mastercard Point Structure

The new “0-1-2-3” point earning structure for Bilt Mastercard holders features no annual fee, 1x points on rent payments, 2x points on travel, 3x points on dining, and 1x points on all other purchases.

Future Expansion and Growth Plans

This represents the company’s initial significant external funding round and will be allocated to expanding its network of real estate and loyalty partners, broadening its distribution channels, and increasing the accessibility of its platform’s credit card to the general public. Jain estimates a 20% enrollment rate among residents.

Long-Term Vision: Becoming a Mortgage Provider

As a growing number of renters transition to homeownership, Bilt intends to capitalize on this potential expansion to ultimately evolve into a mortgage provider for its user base.

“Renting is a phase many individuals experience, and the core business presents a substantial scalability opportunity, particularly within the demographic of under 35-year-olds – often emerging professionals,” Jain concluded. “This represents a unique target market, and Bilt will evolve alongside them as they pursue homeownership.”