Proptech startup Piñata, a rewards and credit building membership program for renters, has raised $13 million in Series A funding, led by Wilshire Lane Capital, a real estate and proptech-focused venture capital firm.
As of January, the startup, which was launched in mid-2020, has seen 1,100% year-over-year revenue growth, more than 600% growth in new users, and nearly 300% growth in new property management partners. The funding will be used to expand Piñata’s offerings and increase the value of renting through the proprietary rewards programs that helps renters build credit as well as earn cash back and other deals for paying rent on time.
“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. “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.”
The startup, which is led by women of color, has so far partnered with hundreds of property managers and owners—from large multifamily organizations and single-family rental companies to small mom-and-pops. This round brings its funding total to $20 million, after having raised $7 million in seed funding.
“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 Lane in the funding round is Ron Moelis, chairman and co-founder of L+M Development Partners, one of the nation’s largest affordable housing developers, among other venture groups.
As part of the fundraise, Demuyakor will join Piñata’s board of directors. In addition to leading the Series A round, Wilshire Lane Capital has launched a new fund, with a target of $125 million, to invest in the proptech space. It has made investments out of the fund to Black-owned fintech firm Esusu, Jetty, Funnel Leasing, and Everyrealm.
