Stake acquired Circa

Last month, it was announced that Stake is acquiring Circa , a Maine startup founded in 2020 that has raised $2.5 million to create a rent payment platform. The deal was valued at $9.5 million in cash and stock.

Stake, on the other hand, is a loyalty company for the rental economy, founded two years earlier, that has raised close to $17 million. The Stake Visa Debit Card, issued by Blue Ridge Bank, is a no-fee debit card that allows renters to earn cash back on rent and other purchases. It is available exclusively at rental communities that offer cash back through the Stake program.

“Stake has always rewarded renters for staying current on rent. But, no payment platform solves issues that drag on performance like delinquencies and arrears. If a resident falls behind on rent the traditional payment providers, and even the new entrants that give points-based rewards, just leave properties with a huge gap in revenue. Now, with Circa, Stake not only prevents delinquencies we collect on past due balances.” – Rowland Hobbs, CEO and co-founder of Stake.

“Circa was founded to bring flexible rent payment innovation to renters. Renters need more options to avoid costly, and heart-breaking, evictions. With Stake, renters are rewarded with Cash Back. With Circa, renters in arrears are empowered with the tools to get current. Together, it’s a perfect combination: performance payments meets performance rewards, with a shared mission to empower renters.” – Leslie Hyman, CEO and co-founder of Circa.

Interestingly, Stake is a client of Unit (judging by this tweet), a financial infrastructure platform that has raised $170 million but has cut ~15% of its staff. According to a company blog post, this decision was due to slower-than-expected revenue growth.

Bottom Line: $1,500 is an average monthly rent (the devil is in the details).