RadPad, the provider of a rental search website and payment service that lets users pay their rent with a credit or debit card, has raised an additional $9 million in a Series A funding round.
The raise — which was led by Altpoint Ventures, a firm that also backs on-demand taxi service Lyft — will help RadPad build on recent momentum.
RadPad launched in Los Angeles, but it has recently expanded to cities including Chicago, Washington, D.C., San Francisco, San Diego and Houston. RadPad’s latest funding round brings its total funding to date to $13 million.
“We will continue growing our growth teams in more cities this year while investing more heavily in growing our relationships with listers,” said RadPad CEO Jonathan Eppers.
RadPad touts a user-friendly interface and says it stands out from competitors by catering to renters — millennials, in particular — more than landlords.
But what may earn the startup the most recognition and success is its online rent payment service. The service lets consumers pay their rent using RadPad mobile apps for iPhone or Android or RadPad’s website.
Since launching the product in October 2014, consumers have made more than $8 million in rent payments using the service. Renters can use it to pay their rent with a Visa, MasterCard, Discover, American Express or through Apple Pay in less than 90 seconds, according to RadPad.
Apple’s App Store has ranked RadPad’s rent payment iPhone app as one of the 30 most popular apps where you can use Apple Pay, RadPad said.
Renters in the U.S. — 100 million of them — pay more than $440 billion in rent annually, and renters under 40 comprise more than 60 percent of tenants, said Vadim Tarasov, managing director of Altpoint Ventures, in a statement.
“RadPad uniquely addresses this immense segment of the market with a mobile, visual and increasingly social user experience that is with renters through the entire duration of their home and apartment rental years,” he said.
Tarasov called the firm a “great example of a consumer-centric, mobile Internet company that is disrupting an entire market, which has been slow to adopt new technologies.”
