Bilt Rewards aims to expand into health care, groceries, and gas with new funding
Bilt Rewards has secured an additional US$150m in equity funding, led by Ontario Teachers’ Pension Plan (OTPP), as reported by BNN Bloomberg.
This funding round also saw participation from Vanderbilt University Endowment, the University of Illinois Foundation, and existing investors, raising Bilt’s valuation to $3.25bn from $3.1bn.
OTPP, which owns Willow Bridge Property Co., decided to back Bilt after observing the growth of its resident and neighbourhood loyalty programs, stated Bilt CEO Ankur Jain in an interview on Thursday.
“We’re building a differentiated platform that benefits residents, landlords, and local businesses,” said Jain. He also mentioned that the extension allows Bilt to raise another $50m from strategic investors, pending board approval.
Jain highlighted that the New York-based startup was profitable in 2023 based on its earnings before interest, taxes, depreciation, and amortization, and expects to maintain profitability in 2024, though specific details were not disclosed.
He noted that Bilt has more than $400m in cash and carries no debt on its balance sheet.
Bilt aims to expand its neighbourhood merchant network by adding verticals such as health care, groceries, and gas. The network has already grown significantly, with over 21,000 restaurants and 3,500 fitness studios, up from about 2,500 restaurants and 100 fitness studios in January, according to Jain.
Members in all 50 US states now spend $30bn annually on Bilt’s platform, a 50 percent increase from the $20bn reported at the beginning of the year.
Rick Prostko from Teachers’ Venture Growth expressed excitement about partnering with Bilt. “We’ve seen the positive reaction from both customers and all those involved in their ecosystem,” he said.
“We are excited about the opportunity to work with Ankur and the full management team and find ways to support them as a value-add partner.”
Since its launch in 2021, Bilt has attracted a significant user base, particularly among individuals in their 20s and 30s. Members earn points for their spending, which they can redeem for rent credits, rewards with merchant partners, or transfer to external loyalty programs like those of major airlines and hotel chains.
Wells Fargo & Co., Mastercard Inc., and Blackstone Inc. were among Bilt’s earliest investors. Other backers include General Catalyst, Todd Boehly’s Eldridge, Left Lane Capital, Camber Creek, and Prosus Ventures.
This year, Ken Chenault, General Catalyst chairman and managing director and former CEO of American Express Co., joined Bilt as chairman.
“In January, we recognized Bilt’s unique capture of loyalty in the previously untapped rental payments space,” Chenault stated in an email. “Bilt is rapidly becoming the leading platform for driving neighbourhood commerce.”
