PadSplit raises $20.5 million Series B to increase housing supply and access

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Country’s largest shared housing marketplace designed for the workforce will expand into additional markets and offer a new turnkey solution for real estate investors

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We started PadSplit four years ago with the simple mission of creating opportunities for people who need them, one room at a time.

PadSplit, the country’s largest shared housing marketplace specifically designed for the workforce, is announcing a $20.5 million Series B round of financing today with investment from Core Innovation Capital, Impact Engine, Citi, Alate Partners, Mark Cuban Companies, and Cox Enterprises, amongst others. The Atlanta-based company will utilize the capital for market expansion and to offer a new turnkey solution for real estate investors to create PadSplits, as a means to create more housing supply. To date, PadSplit has created more than 2,500 shared housing units and housed more than 5,000 individuals, with rooms available at 40-50 percent of the average cost of a one-bedroom apartment in its markets. PadSplit is also far more accessible than traditional one-bedroom apartments because it requires no minimum credit score or security deposit.

“We started PadSplit four years ago with the simple mission of creating opportunities for people who need them, one room at a time,” said founder and CEO Atticus LeBlanc. “I’m incredibly grateful right now, knowing that this financial support enables us to continue increasing housing supply that is more affordable and more accessible for the workers serving our communities. As a Public Benefit Corporation, we believe it’s possible to do well and good at the same time, and our results have clearly proven that our double-bottom-line approach can create housing supply faster and more cost-effectively than any other solution. We’re actively expanding geographies so more of our workforce can find quality housing and save money for their futures.”

Founded in 2017, PadSplit’s marketplace offers shared housing uniquely tailored for community workers who serve schools, restaurants, hospitals, grocery stores, hotels, and government offices. Each PadSplit includes a private, fully furnished bedroom and shared common areas, with utilities and WiFi at no additional cost. PadSplit’s backend technology facilitates a customizable payment schedule so residents can align the timing of payments to their work pay periods, making it easier to budget. PadSplits are located nearby job centers or public transit, and with no long-term commitments, residents can easily relocate to remain close to new jobs without relying on car ownership or long commutes. Finally, PadSplit partners with other mission-focused organizations to provide more benefits at no-cost, including Esusu for credit repair and monitoring, Wonolo for job matching and Teladoc for 24/7 access to telehealth services.

As a result of this targeted approach, PadSplit is helping its residents achieve greater financial stability:

  • 88% have improved their credit scores
  • Residents report savings of $420 per month across their housing, utility and transportation costs
  • Many have been able to save enough to purchase cars, move into their own apartments, and even become homeowners, where they have been able rent out rooms through the platform to start the cycle for others

One PadSplit member said about their experience: “PadSplit is a fresh start at a fraction of the cost, and it helped me build a foundation for financial stability. Finding a fully-furnished place in the city at this price point is near impossible. What you get with PadSplit — fully-furnished, all utilities, laundry — can’t be beaten.”

PadSplit’s model has been proven to increase housing supply, while decreasing barriers to access, all without any direct public subsidy. Because PadSplit maximizes the space available in existing single-family homes, property owners are also able to increase net operating income through their PadSplit homes, while providing a vital housing option for the workforce. PadSplit provides management services for all of its homes, providing marketing support, handling background checks, coordinating payments and building proprietary technology for the resident experience. And now, through this funding, PadSplit will offer a turnkey solution to real estate investors interested in shared housing, providing access to a vendor network to more efficiently open PadSplit rooms and provide lending and on-site management services.

Today, PadSplit has available rooms in Atlanta, Houston, Richmond, Tampa, Indianapolis, New Orleans, and San Antonio, with multiple new markets under development. The company is continuing to expand with plans to add more units to its marketplace, for more than 3,500, by the end of the year. To power this next round of growth, PadSplit is also hiring for many open, all-remote positions.

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About PadSplit
PadSplit is the country’s largest shared housing marketplace that provides housing specifically designed for the workforce. As a Public Benefit Corporation, we’re intentional about doing well AND doing good, so we focus on increasing housing supply and decreasing barriers to access. Our award-winning model allows individuals to find a flexible, long-term rental option that includes furniture, utilities, and access to public transit, all without a minimum credit score. PadSplit’s technology platform also enables personalized rent payments that facilitate easier budgeting and allow residents to improve their financial health. Headquartered in Atlanta, PadSplit operates more than 2,500 shared housing units across the country. Apply to become a resident or a property owner at https://PadSplit.com.

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Hela Sheth
PadSplit
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