Bilt Rewards, a customer loyalty program that converts rental payments into points for various perks such as airline miles, hotel stays, and restaurant meals, has raised US$150 million in additional equity funding. This funding round was led by the Ontario Teachers’ Pension Plan (OTPP), lifting Bilt’s valuation to US$3.25 billion from US$3.1 billion.
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Key Investors and Funding Details
Other notable participants in this extension to the January funding round include Vanderbilt University Endowment, the University of Illinois Foundation, and existing investors. OTPP’s interest was piqued by the growth of Bilt’s resident and neighborhood loyalty programs. OTPP, which owns Willow Bridge Property Co., sees great potential in Bilt’s offerings, according to Bilt’s CEO, Ankur Jain.
“We’re building a differentiated platform that benefits residents, landlords, and local businesses,” Jain stated. The additional funds will allow Bilt to raise another US$50 million from strategic investors, pending board approval.
Financial and Operational Growth
Bilt, a New York-based startup, was profitable in 2023 based on its earnings before interest, taxes, depreciation, and amortization (EBITDA) and expects to remain profitable in 2024. The company has over US$400 million in cash and no debt.
Bilt plans to expand its offerings to include healthcare, groceries, and gas within its neighborhood merchant network. This network has grown significantly, boasting over 21,000 restaurants and 3,500 fitness studios as of now, up from 2,500 and 100, respectively, in January.
Membership and Market Impact
Members across all 50 U.S. states are spending approximately US$30 billion annually on Bilt’s platform, marking a 50% increase from the US$20 billion reported earlier this year. Teachers’ Venture Growth’s Rick Prostko expressed excitement about partnering with Bilt, noting the positive reactions from customers and ecosystem participants.
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Rapid Growth and Strategic Backers
Launched in 2021, Bilt has quickly attracted a demographic of people in their 20s and 30s. Members earn points for spending, which can be redeemed for rent credits, rewards with merchant partners, or transferred to outside loyalty programs such as those operated by major airlines and hotel chains.
Early investors in Bilt include Wells Fargo & Co., Mastercard Inc., and Blackstone Inc. Other backers are venture capital firm General Catalyst, Todd Boehly’s Eldridge, Left Lane Capital, Camber Creek, and Prosus Ventures.
Ken Chenault, Chairman and Managing Director of General Catalyst and former CEO of American Express Co., joined Bilt as chairman this year. “In January, we recognized Bilt’s unique capture of loyalty in the previously untapped rental payments space,” Chenault said. “Bilt is rapidly becoming the leading platform for driving neighborhood commerce.”
Bilt’s innovative approach to converting rental payments into loyalty rewards has garnered significant investment and rapid growth. With the backing of major investors like OTPP and an expanding merchant network, Bilt is well-positioned to continue its trajectory as a leading platform in the loyalty program space.
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