Proptech startup Piñata, the rewards and credit building membership program for renters, 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 1,100% 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.
Piñata aims to democratize credit access for renters and puts thousands of dollars back in their pockets every year. Members can earn rewards for everyday goods and services and exclusive discounts from leading brands, totaling thousands of dollars a year in savings. They can also boost their credit scores with Piñata, which it says is the first and only service to report renters’ payments to the major credit bureaus for free.
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.
Launched in mid-2020, Piñata has exhibited record year-over-year growth from January 2021 to January 2022, including more than 600% growth in new users and nearly 300% growth in new property management company partners.
“We were immediately impressed by Piñata’s user growth. Just one look at its 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 Lane in the round is Ron Moelis, chairman and 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.
The company, which raised $7 million in seed funding, has now brought its fundraising total up to $20 million.
