A $200m equity raise at a valuation double the previous round? No you did not wake up in 2021 this morning, it is (checks watch) definitely January 2024.
I was just chatting with someone earlier this week about equity raises and I commented that there seems to be much more activity this month than in January 2023. While we are most definitely not back in 2021, VCs seem to be opening up their checkbooks a little more.
Which brings us to Bilt Rewards. What do they do? This is not fintech infrastructure, or B2B fintech (two popular categories today), this is good old fashioned consumer fintech. The same category that once valued Chime at $25 billion and Revolut at $33 billion.
The hook for Bilt is that they have created a rewards program around paying rent. They have attracted a young demographic, primarily 21 to 35 year olds who are spending $20 billion per year on their Bilt card, which is basically just a Wells Fargo credit card with some additional features.
They have attracted the former CEO of American Express, Ken Chenault, who has joined the board as Chairman and his VC firm, General Catalyst, led the round.
Perhaps most impressive of all, Bilt became profitable in 2023 on a EBITDA basis. I sincerely hope they can grow into their valuation, something that other major consumer fintechs have struggled to do.
Featured
Bilt Nabs $3.1 Billion Valuation, Ken Chenault Joins as Chairman
General Catalyst, Eldridge invest in a $200 million equity round. Startup wants to add neighborhood merchants to its rewards program.
From Fintech Nexus
> Plaid is Everywhere in Fintech Today
By Peter Renton
Plaid is becoming the glue that connects so much in financial services. Here is a rundown of just some of their recent developments.
> The Future of On Demand Pay and Earned Wage Access
By Jason Lee
The co-founder of DailyPay shares his views earned wage access, why it is so important, why it is obviously not a loan, and what is next.
> Financial Analysis: Will $5B Trade Republic, Germany’s Robinhood, win the race for European wealth?
By Michiel Milanovic
Navigating dooming PFOF regulations and a potential cut in interest rates
Podcast
Fintech One-on-One: Andrew B. Morris, Chief Content Officer and Curt Persaud, Co-Founder & CTO of Fintech Islands on Caribbean fintech
Fintech Islands is the biggest fintech event in the Caribbean, it is taking place on January 24-26 in Barbados.
Listen Now
Also Making News
- USA: Brex cuts 20% of staff amid reports of stalled growth, high burn
Expense management startup Brex, which was valued at $12.3 billion two years ago, has laid off 282 people, or about 20% of its staff today.
- USA: Klarna to debut $7.99 monthly plan as buy now, pay later firm seeks new revenue sources ahead of IPO
Klarna Plus is the latest example of a fintech player hoping to build out its offerings and boost recurring revenue. An IPO is imminent, the firm’s CEO said.
- USA: CFPB’s overdraft proposal exempts the small banks that need it most
Small banks appeared to notch a big win with the exemption from the Consumer Financial Protection Bureau’s overdraft proposal. But some experts are questioning the CFPB’s rationale, given research that shows small banks’ overreliance on overdraft revenue.
- USA: Debate Over Debit Interchange Caps Set to Heat Up as Commentary Deadline Is Pushed Out
The debate over debit card interchange fees — and the cap on those fees — looks set to rage for at least a few more months. The Federal Reserve said in a statement Monday (Jan. 22) that it would delay the deadline for comments on the controversial proposal to lower maximum interchange fees on debit card transactions.
- USA: Citi unveils browser extension to help shoppers find online offers
Citi has launched a free desktop browser extension that helps cardholders search for offers and coupons at thousands of online merchants.
- USA: Synchrony to buy Ally’s point-of-sale lending unit
The deal, expected to close this quarter, includes relationships with nearly 2,500 merchant locations and more than 450,000 active borrowers in home improvement services and healthcare, the companies said.
- LatAm: Santander Mexico to launch digital bank ‘soon,’ executive says
Santander’s Mexico unit will launch its digital bank service in the next few months, an executive said on Tuesday, adding the bank’s planned roll-out was in the final stages.
- USA: Credit Card Debt Is Up—and It’s Taking Longer to Pay Down
From fuel and groceries to hotels and airline tickets, consumers are putting more purchases on credit cards—and taking longer to pay them off.
To sponsor our newsletters and reach 220,000 fintech enthusiasts with your message, contact us here.
