Bilt is now a unicorn three times over.
The rent payment platform announced a $200 million investment that doubles its valuation to $3.1 billion.
The money was raised in a funding round led by General Catalyst. The venture capital firm’s chairman and managing director Ken Cheneault was announced as Bilt’s new chairman, and NFL commissioner Roger Goodell also joined the proptech firm’s board.
Bilt’s $150 million funding round in October 2022 had valued the company at $1.5 billion, just 13 months after a $60 million round gave it a $350 million valuation. Other participants in the latest round included previous Bilt investors Left Lane Capital, Camber Creek and Prosus Ventures, along with one newcomer, Eldridge.
The infusions of cash reflect venture capitalists’ enthusiasm for a leading provider of a service embraced by young people: the ability to pay rent with a credit card, and build a credit history in the process. Homeowners can take care of their mortgage payments the same way.
The startup, which only launched in April 2022, has cut deals with some of the largest apartment building owners, among them Greystar, AvalonBay, Equity Residential, Related Companies, the LeFrak Organization, Starwood, Cushman & Wakefield, Camden and Brookfield. Industry members of Bilt’s Rewards Alliance count almost 4 million apartments among them.
Landlords may see the system as an amenity to attract and retain tenants and to achieve more consistent rent collection. They pay a fee to use the service.
But Bilt’s secret sauce is that customers reap rewards by paying rent through Bilt’s platform. They can even use plastic to pay credit card–averse mom-and-pop landlords, who balk at sharing 2 percent or more of a tenant’s rent with Visa, MasterCard or American Express. Bilt cuts those landlords a paper check after its users pay with digital dollars.
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Bilt’s rewards for payments within its network of landlords can be used to pay for rent, hotel stays, plane tickets, Amazon purchases, and even down payments on home purchases. No rewards are issued for mortgage payments, although Bilt says that is on the way.
The startup says is cash-flow positive and achieved profitability on an EBITDA basis last year. It plans to expand its reach further in multifamily, single-family and student housing.