Piñata raises $13 million to transform the rental landscape, strengthen the relationship between landlords and tenants
Funding will allow the woman-led rental fintech to build its growing team and make paying rent smarter and more rewarding for millions
NEWARK, N.J., Feb. 24, 2022 /PRNewswire/ -- Proptech startup Piñata, the largest rewards and credit building membership program for renters, announced today it has raised $13 million in Series A funding led by real estate- and proptech-focused venture firm Wilshire Lane Capital. The funding comes amid Piñata's massive 1100% year-over-year growth as of January 2022, while also widening its audience of rental users and property management company partners.
"We're thrilled to be partnering with Wilshire Lane Capital. This is a heavy-hitting team of proptech and real estate experts. Having their expertise at the table will only further our mission to reward millions of renters across the country and create a win-win-win model for renters, property management companies and businesses," said Lily Liu, co-founder and CEO of Piñata.
Rent is the single biggest monthly expense for most Americans, accounting for more than 50% of people's income. Piñata has pioneered the first and only free rent rewards and credit building program for independent renters. The company is on a mission to improve the financial lives of the more than 100 million renters in the U.S. and improve the tenant-landlord relationship in the process.
Launched in mid-2020, Piñata has already emerged as a leader in the renter rewards space. It exhibited record year-over-year growth from January 2021 to January 2022, including:
- More than 600% growth in new users
- Nearly 300% growth in new property management company partners
- 1100% growth in revenue
"We were immediately impressed by Piñata's user growth. Just one look at their ratings and performance on the Apple iOS and Android app stores and it's clear that users love Piñata and the company's app experience," said Adam Demuyakor, Founder and Managing Partner of Wilshire Lane Capital. "Renters, who are increasingly Millennials and Gen-Z, are accustomed to being rewarded with 'points' with everything else in their lives - from flights and hotels, to movies and restaurants. We felt that it was only natural to find a company that could elegantly reward customers for their ongoing rent payments as well. And this of course creates win-win situations for landlords, which is a clear area of focus of ours."
Joining Wilshire in the round is Ron Moelis, Chairman & Co-founder of L+M Development Partners, one of the largest affordable housing developers in the country, among other venture groups. As part of the fundraise, Demuyakor will be joining Piñata's board of directors.
Piñata is democratizing credit access for renters and putting thousands of dollars back in their pockets every year. Members can earn rewards for everyday goods and services and exclusive discounts from leading brands, totalling thousands of dollars a year in savings. They can also boost their credit scores with Piñata, which is the first and only service to report renters' payments to the major credit bureaus for free. With 53 million Americans lacking a credit score, Piñata is fundamentally bridging the credit discrimination gap for a massive swath of the population.
Hundreds of property management companies and owners, from the largest multi-family and single family home groups to small mom-and-pops, have partnered with Piñata to create customized reward programs, which increases net operating income by decreasing delinquency and generating ancillary revenue. Collectively, Piñata's unique ecosystem is improving the relationship between tenant and landlord while making rent more rewarding.
The company, which raised $7 million in seed funding, has now brought its fundraising total up to $20 million. With the funding raised, Piñata aims to push forward an aggressive agenda: double-down on its offerings with significant, game-changing financial features that will continue to revolutionize how the world sees rent.
About Piñata
Piñata is the nation's largest rental membership program on a mission to make renting smarter and more rewarding for tenants and landlords alike. The company, founded in 2020 and led by women of color, offers renters a unique set of financial benefits including free rewards and credit-score-boosting opportunities, while also providing a unique amenity for landlords. Piñata has raised $20 million from leading investors including Wilshire Lane Capital.
SOURCE Piñata
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