Piñata, which describes itself as a rental club whose incentive system makes the renting process easier for tenants and landlords alike, raised $13 million in a Series A funding round, the company stated in a news release.
The Newark, New Jersey, company runs an app that gives users points for paying their rent on time. The company said in its announcement that the funding will let the company “build its growing team and make paying rent smarter and more rewarding for millions.”
Pinata was founded in mid-2020.
Revenue grew by 1,100% over the 12 months since the end of January 2022, the company stated. Users, the company stated, grew by more than 600% and property managers by 300%.
The company states its mobile app “is available to any renter in the U.S.”
“We’re thrilled to be partnering with Wilshire Lane Capital. This is a heavy-hitting team of proptech and real estate experts,” said Lily Liu, co-founder and CEO of Piñata.
The Series A round was led by existing investor Wilshire Land Capital and brings Piñata’s total funds raised to $20 million, according to the announcement.
“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,” Adam Demuyakor, founder and managing partner of Wilshire Lane Capital, said in a prepared statement.
“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.”
Demuyakor is joining Piñata’s board as part of the deal.
Ron Moelis, chairman and co-founder of L+M Development Partners, a giant in affordable housing, is another investor. Also joining, according to the announcement, were “other venture groups.” Details were not provided.
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