back Back

Stake raises $12m in Series A funding

By Edlyn Cardoza

July 04, 2022

  • Banking Services for Renters
  • Cashback
  • ESG Fund
Share

Stake, Cash Back, Banking Services for Renters, RET Ventures, No-fee Banking Services, Savings, Risk Management, USAStake, which provides cashback and banking services to renters, recently 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.

The round was led by RET Ventures, which selected Stake as one of the first investments for the new RET Ventures ESG 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 behavioural science, Stake was founded in 2018 to empower renters by providing them with cash back on their rent and 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.

“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 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.”

Previous Article

July 04, 2022

NatWest announced the launch of its digital Carbon Planner

Read More
Next Article

July 04, 2022

OppZo raises $260m in funding to drive capital to distressed communities

Read More






IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

October 11, 2024

UPI Transactions Jump 52% Fuelling India’s Digital Payment Boom

Read More

October 11, 2024

ClearBank onboards first clients to T2 European payments system

Read More

October 11, 2024

Experience UK & Privalgo partner on currency exchange solutions

Read More

Related Reports

Sales League Table Report 2024
Know More
Global Digital Banking Vendor & Landscape Report Q3 2024
Know More
NextGen WealthTech: The Trends To Shape The Future Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More