(Bloomberg) -- Bilt Rewards, the customer-loyalty program provider that converts rental payments into points for airline miles, hotel stays, restaurant meals and other perks, has raised US$150 million in additional equity funding led by Ontario Teachers’ Pension Plan.
Vanderbilt University Endowment, the University of Illinois Foundation and existing investors also participated in the extension to a January funding round, lifting Bilt’s valuation to $3.25 billion from $3.1 billion.
OTPP, the Canadian pension fund, owns Willow Bridge Property Co., and expressed interest in backing Bilt after witnessing the growth of both its resident and neighborhood loyalty programs, Bilt CEO Ankur Jain said Thursday in an interview.
“We’re building a differentiated platform that benefits residents, landlords, and local businesses,” he said. Through the extension, he added, Bilt can raise another $50 million from strategic investors, subject to board approval.
Jain said the New York-based startup, which was profitable based on its earnings before interest, taxes, depreciation and amortization in 2023, is set to remain profitable in 2024, though he declined to provide specifics. Bilt has more than $400 million in cash and no debt on its balance sheet, he added.
The startup plans to add verticals such as health care, groceries and gas to its neighborhood merchant network, which has grown to over 21,000 restaurants from about 2,500 seven months ago, and 3,500 fitness studios from about 100 in January, Jain said.
Jain said members in all 50 U.S. states are spending $30 billion on its platform annually, a 50 per cent jump from the $20 billion figure Bloomberg News reported at the start of the year.
“We’ve seen the positive reaction from both customers and all those involved as part of their ecosystem,” said Teachers’ Venture Growth’s Rick Prostko. “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.”
Bilt, launched in 2021, has grown rapidly as people in their 20s and 30s flocked to the platform. Members earn points for spending, which they can redeem for rent credits or rewards with merchant partners or transfer to outside loyalty programs, like those operated by major airlines and hotel chains.
Wells Fargo & Co., Mastercard Inc. and Blackstone Inc. were among Bilt’s earliest investors. The company’s backers include venture capital firm General Catalyst, Todd Boehly’s Eldridge, Left Lane Capital, Camber Creek and Prosus Ventures.
General Catalyst Chairman and Managing Director Ken Chenault, who was previously the chief executive officer 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 in an emailed statement. “Bilt is rapidly becoming the leading platform for driving neighborhood commerce.”
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