Points-on-rent startup Bilt announces new rewards credit cards with Cardless and a $250 million funding round
The company announced on Thursday that it has raised $250 million in new funding, bringing its total valuation to $10.75 billion, more than twice its valuation from roughly a year ago.
It's also introducing Bilt Card 2.0, an upgraded credit card offering that will launch in February of next year and is being developed in partnership with Cardless—which also had a hand in launching the American Express Coinbase card earlier this year.
In a blog post, Bilt said that its Card 2.0 will have three different options: A no-fee option and two premium levels with $95 and $495 annual fees.
The announcement is a sign that Wells Fargo and Bilt are ending their partnership on the Bilt Rewards Mastercard earlier than expected. The partnership had been slated to run until 2029.
That card originally launched to the public in March 2022 with a novel points-on-rent reward and quickly took off among points and miles enthusiasts. Within 18 months, it had activated 1 million accounts.
The Wall Street Journal has reported Wells Fargo was losing money on the deal, raising questions about the card's sustainability.
Both Wells Fargo and Bilt declined to comment bout the specifics of the partnership when contacted by Fast Company.
New York-based Bilt has built a $1 billion-a-year business on the strength of its rewards program, as Fast Company reported in June, and most of its revenue now comes from its partnerships with property managers. The company processes rent payments for property managers and offers their tenants access to its expanding loyalty program, which now includes some 40,000 merchants.
Jain told Fast Company that he imagined the credit card occupying a relatively modest place in his company's overall strategy. 'It's not our core business,' he said. 'Our job is to provide the best rewards ecosystem, the best commerce platform, the best [customer] acquisition, the best brand, so that our partners can create a great card product around it.' According to Jain, only 15% of Bilt's rewards program members are cardholders.
As for how things will work with Bilt Card 2.0? We'll need to wait until next year to find out. At that time, 'current cardholders will be seamlessly moved from Wells Fargo to our new card platform,' according to Bilt's blog post.
In the meantime, Bilt's leadership is exuding confidence.
'Bilt represents the convergence of America's largest spending categories—housing and local commerce—into a single, powerful network that benefits everyone involved,' said Bilt chairman and former American Express CEO Ken Chenault, in a statement. 'What we're building goes beyond the four walls of your apartment; we're connecting you with your entire neighborhood and making every aspect of where you live more rewarding.'
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