Banking News

Stake Cash Back and Banking Services for Renters Raises $12 Million in Series A Funding

Stake Cash Back and Banking Services for Renters Raises $12 Million in Series A Funding
RET Ventures’ first ESG fund, together with a coalition of mission and impact investors, leads investment to align owner and renter incentives.

Stake, which provides Cash Back and banking services to renters, announced the completion of its $12 million Series A financing round. With Stake, renters earn Cash Back when they take positive actions, like signing a lease and paying rent. Owners save money with every renter action.

Latest Fintech News: Natixis Corporate & Investment Banking closes $300 million acquisition facility for SKY Leasing

The round was led by RET Ventures, which selected Stake as one of the first investments for the new RET Ventures ESG Fund (the “Housing Impact Fund”). Participation also included: Enterprise Community Partners, which, since 1982, has helped create or preserve 873,000 homes; Hometeam Ventures; Operator Stack; and Second Century Ventures, the investment arm of the National Association of Realtors. Existing investors Shadow Ventures and Olive Tree Ventures also participated in the round.

Today more than 44 million American households pay rent every month, and from 1985 to 2020, median rent prices increased by nearly 150% despite income growing just 35%. Leveraging behavioral science, Stake was founded in 2018 to empower renters by providing them with Cash Back on their rent as well as no-fee banking services to build savings. Stake also mitigates pain points for building owners, increasing lease-ups, reducing economic vacancy, improving maintenance, and increasing ancillary revenue.

Using Stake, property managers receive a 130% return on every dollar spent. Renters earn an average of 4% Cash Back on their rent each month. Across the $385 million in annual leases connected to the platform, 65% of renters have more money in their Stake account than any other banking account. In the past year, the number of residences that offer Cash Back with Stake has grown by 10x.

Latest Fintech News: VR Insurance Holdings, Inc. and The National Security Group, Inc. Announce Completion of Merger

“Renters don’t need more debt or loans,” noted Rowland Hobbs, Co-Founder and CEO of Stake. “What renters need is money to help with everyday essentials and to establish long-term savings. With Stake, we have reimagined the classic ‘rainy day fund’ for renters to build the sort of wealth traditionally associated with home ownership. Now, their largest expense is also their largest source of savings.”

The new funding round will enable Stake to continue building out its financial infrastructure and suite of solutions that address difficult issues for renters and property owners alike.

“Stake’s approach to housing affordability is perfectly aligned with the mission of our ESG-centric fund,” said John Helm, partner at RET Ventures, who will join Stake’s board. “While a slew of platforms offer renters innovative payment options, they are all credit or debt-based. They ultimately encourage dangerous behaviors as part of their proposed solution. Stake flips the script on this model by offering a risk-free, renter-centric, efficient, and easy-to-use pathway toward building wealth.”

“Unlike homeowners, renters rarely reap financial benefits from paying for their homes – and families who rent tell us they could use a little extra cash each month. This is why Stake’s goal of empowering more economically resilient renters through cash back and no-fee banking services resonated with us,” said Enterprise Community Partners President and CEO Priscilla Almodovar. “It’s not just a good deal for renters. It makes sense for landlords, too, who are more likely to retain residents, which in turn strengthens communities.”

Latest Fintech News: OwlTing Group Leverages Dow Jones Watchlist for OwlPay to Achieve Robust Global Regulatory Compliance

[To share your insights with us, please write to sghosh@martechseries.com]

Related posts

iPipeline Integrates AlphaTrust e-Sign into the AFFIRM Order Entry Platform

Fintech News Desk

Large Banks Raising Stakes to Compete with Fintech Challengers, Says Keynova Group’s Q4 Online Banker Report

Fintech News Desk

EP Wealth Advisors Adds Veteran Financial Services Industry Marketer Jim Mocci to Support Growing Advisory Network

Fintech News Desk
1