Proptech startup Piñata, a 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.
“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, which launched in mid-2020″
Rent is the single biggest monthly expense for most Americans, accounting for more than 50 per cent of many people’s incomes. Piñata has developed a free rent rewards and credit building program for independent renters.
“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 and co-founder of housing developer L+M Development Partners, along with other venture groups. As part of the fundraise, Demuyakor will be joining Piñata’s board of directors.
Piñata 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 reports 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.
With this round, the company has now brought its fundraising total up to $20 million.