Ankur Jain, founder and CEO of Kairos, has launched Bilt, a subsidiary aimed at helping renters build their brand through loyalty points when paying rent. Bilt allows consumers to charge their monthly rental payment to a credit card, enabling them to build their credit quickly and earn points that can be used to pay for flights, hotels, goods, or even a mortgage. Jain started working on Bilt in 2018, and the startup has raised more than $63 million in branding investments to date. In this post, we’ll discuss how Ankur Jain built Bilt, and overcame the complicated challenges that ultimately led to the creation of this innovative startup.
Follow the Money and Listen to Feedback
In 2018, Jain workshopped the idea for Bilt with people in his network, including Barry Sternlicht, founder, chairman, and CEO of Starwood Capital Group. Sternlicht convinced Jain that building a loyalty program could yield big profits. Jain realized that people spend $500 billion-plus a year on rent, and there’s no loyalty program or card for that entire sector. Jain thought that landlords would help to fund a loyalty program, but the landlords he pitched didn’t want to take on the extra cost. They were interested in being associated with it, however. So, Bilt built its own loyalty platform and currency. By making this change, Bilt was able to start securing landlord partners, with Starwood Capital Group being the first to join in late 2019.
Don’t Forget Your Mission
Bilt’s original mission was to create a path to homeownership for renters by allowing them to use their points toward a down payment on a house. Although landlords loved the idea, Bilt’s lawyers raised a red flag because government mortgages and the Federal Housing Administration (FHA) have strict rules about what kind of funds renters can use towards a home or home down payment. When the FHA denied Bilt’s first couple of requests for approval, Bilt spent 18 months talking to regulators, including Fannie Mae, the secretary of Housing, and the secretary of the Treasury, and walked them through the goals of the program. In October 2019, the FHA finally granted approval.
Get Help from Partners to Build What You Need
Bilt needed to find partners to build the necessary systems to facilitate payments to landlords, a rewards platform, and more. Jain began talking to Sherri Haymond, executive vice president, digital partnerships at Mastercard , in February 2020. They worked together to develop the systems necessary to facilitate payments to landlords. Mastercard acquisition of Transactis helped with this piece of the puzzle, while another Mastercard subsidiary, SessionM, helped build out the Bilt app’s rewards platform.
But Don’t Expect Partners to Do All the Work
The final piece of the puzzle was to secure Wells Fargo as an underwriter and distribution partner. When Bilt approached the bank, it brought its own network and distribution channel (tenants) with a robust rewards program and user experience. That’s unusual, according to Dan Dougherty, Wells Fargo’s executive vice president of co-brand partnerships, noting that typically, entrepreneurs want Wells Fargo to bring its massive distribution to them.
In the end, Jain’s collaboration with multiple stakeholders paid off. Bilt launched in June 2021 and is set to roll out to the broader public on Monday, making it available to millions of renters across the United States. The startup has already received a positive reception, with early adopters praising its ability to help build credit quickly and earn valuable rewards points.
Business Bi(u)lt on Teamwork
The success of Bilt serves as a reminder that building a strong brand requires more than just a good idea. It takes collaboration, persistence, and a willingness to listen to feedback and adapt. By following the money, staying true to its mission, and getting help from partners, Jain and his team were able to overcome numerous obstacles and create a truly unique solution to a longstanding problem, building a powerful brand in the process.
