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Proptech company Piñata announced Tuesday that it is debuting a new offering that’s meant to reward tenants for on-time payments while also streamlining operations for property managers.
The company also announced Tuesday that it just received a new infusion of cash.
The new program is called Piñata Pay. According to the company’s website, the program aims at “reimagining how the world pays rent.” A statement further explains that Piñata Pay is backed by Visa and uses artificial intelligence technology. When renters pay on time, they receive cash-back rewards and automated credit reporting, among other things. The idea is that the process makes it easier for tenants to pay their rent, while also allowing them to build their credit scores in a way that was previously only available to homeowners.
For landlords and property managers, Piñata Pay should lead to “increased rent payments and renter satisfaction,” the statement notes, which should produce more reliable income and less tenant turnover.
Lily Liu
“Pay Rent. Get Rewards. Build Credit,” the statement added. “Piñata’s user experience and feature-rich platform establish it as the responsible alternative to credit cards, benefiting both renters and property management companies.”
CEO Lily Liu added in the statement that the goal is to make paying “rent rewarding, affordable and secure for all renters, everywhere.”
“With this offering, we wanted to create a solution that can improve the way we rent, in a way that’s financially responsible and avoids the potential risks of credit cards and increased debt,” she continued.
Piñata currently operates in all 48 contiguous U.S. states, though Piñata Pay is only available via invitation right now.
In addition to announcing Piñata Pay Tuesday, the company also revealed in its statement that it received investments from venture firms Wilshire Lane Capital, 29th Street Capital, and Bdev Ventures. The company didn’t publicly disclose the size of the investments. However, the statement noted that the new funding should help accelerate Piñata’s growth.
“These capital injections enable Piñata Pay to become best-in-class, reinforcing efforts to expand the immensely popular rent rewards and credit building platform,” the statement said. “The investments further solidify Piñata’s market leadership and unwavering commitment to providing exceptional value to renters and landlords across the nation, especially at a time where consumers are in need of support and extra savings.”
On the topic of growth, the statement further noted that Piñata “has already achieve over 2.5x last year’s revenue in the first two quarters of 2023.”
Piñata previously announced a Series A funding round last year, at which time it netted $13 million. Wilshire Lane Capital led that funding round as well.
Adam Demuyakor
The firm additionally raised $7 million during a previous seed round of funding.
In Tuesday’s statement, Wilshire Lane Capital Managing Partner Adam Demuyakor said his company has invested in Piñata thanks to the strength of the firm’s “growth metrics and the uniqueness of its proposition.”
“We see enormous potential in Piñata’s mission to reward and help everyday renters,” Demuyakor added, “and we are proud to play a part in their journey.”
