Split Pay raises $100M Series B to smooth renters' cashflow
What's the deal? Split PayDealroom has a profile for this one. Try Dealroom → has raised roughly $100 million in a Series B round to fund its rental lending business, which floats renters part of their monthly bills. The startup lets renters pay their full bill on the due date while it covers up to 50% for up to 30 days.
How does it work? Split Pay charges 2% of the total bill plus a $10 monthly subscription fee, but no late fees or interest. Those who ultimately don't pay lose access to the service.
What's the endgame? The company wants the consumer economy to work more like the invoice-based business economy, which accepts that income can be lumpy. Its aim is to reconcile the timing gap between large bills, due once a month, and paychecks, which arrive twice a month.
By the numbers: Split Pay claims around one million members, with a quarter using it monthly. It first raised $15 million in seed funding in 2023, then $25 million in a Series A last fall, before this Series B, which may still grow.
Why now? Split Pay is betting that AI can widen underwriting without widening losses. "We believe that AI is going to blow up underwriting, so we spent our first two years like a lab building a new foundation model focused on people under 40," says co-founder and chief executive officer Andrew Borovsky, a former Block and Cash AppDealroom has a profile for this one. Try Dealroom → executive.
The problem it targets: "What we found was that our average consumer had $90,000 of income and generated around $2,100 in cashflow, but was still struggling and living paycheck-to-paycheck," Borovsky says. "The biggest reason was the timing of bills."
The service also covers other large expenses, including student loans and car payments. Split Pay will soon launch a VisaDealroom has a profile for this one. Try Dealroom → credit card with a low APR and no rewards program.
The signal: The round lands among the largest 5% of UK fintech Series B deals on record, based on 238 comparable rounds. It marks a fresh test of whether buy-now-pay-later-style economics can extend to recurring bills like rent.
Image credit: Generated with Gemini
