Bilt Nabs $3.1 Billion Valuation, Ken Chenault Joins as Chairman

Gillian Tan, Bloomberg News

(Bloomberg) -- Bilt Rewards raised equity in a transaction that more than doubles the startup’s valuation to $3.1 billion as consumers continue to flock to its loyalty program, which converts rental payments to points that can be used for air miles and other rewards.

Bilt raised $200 million in the round, which was led by the venture capital firm General Catalyst and included participation from Todd Boehly’s Eldridge and existing investors Left Lane Capital, Camber Creek and Prosus Ventures. Ken Chenault, the chairman of General Catalyst and the former chief executive officer of American Express Co., will join Bilt as chairman, according to Bilt’s CEO Ankur Jain.

The New York-based startup plans to use some of the proceeds to expand its rewards network to include small restaurants, grocery stores, dry cleaners and other local merchants. National Football League Commissioner Roger Goodell, who introduced Chenault to Bilt, has also joined the company as an independent director, Jain said.

“No organization has figured out hometown loyalty and engagement better than the NFL,” Jain said in an interview. “We want to help these small businesses reach a captive audience of all the renters in their neighborhood and to drive more spend.”

Bilt’s members — who are largely between the ages of 21 and 35 — are now spending almost $20 billion on the firm’s platform every year. Cities with the most Bilt members include New York, Los Angeles, Dallas, Washington and Seattle. Members earn points for certain spending, which they can redeem for rent credits or rewards with certain merchant partners as well as transfer to outside loyalty programs, like those operated by major airlines and hotel chains.

With Chenault, Bilt is getting an executive who helped build American Express into the payments giant it is today, with more than 130 million cards-in-force. Under Chenault, Amex spent years persuading millions of mom-and-pop businesses to finally begin accept the credit-card giant’s products.

In 2019, after Chenault’s departure, the company declared victory in that quest in the US after it reached “virtual parity” coverage with rivals Visa Inc. and Mastercard Inc.

“Bilt has uniquely captured loyalty in an area previously untouched: rental payments,” Chenault said in an emailed statement.

The startup, which has no debt, became profitable on an earnings before interest, taxes, depreciation and amortization basis in 2023, Jain said, declining to provide specifics on the company’s results. Bilt has no immediate ambitions to pursue an initial public offering, he said.

“We have plenty of capital, and don’t have to rush to go public,” he said. “There’s still so much room to grow.”

The startup is in talks with mortgage servicers about partnerships that would enable homeowners to earn rewards from making their mortgage payments, Jain said.

Already, some of the country’s largest landlords, including Related Cos., Greystar, Willow Bridge Property Co., AvalonBay Communities Inc. and Invitation Homes Inc., have committed to using Bilt as their sole payments platform. As a result, the startup has active members in all 50 states, Jain said.

“We’re laser focused on expanding the number of Americans that earn rewards from rent,” he said. “We’ve only scratched the surface.”