Stoa, the Arizona company that debuted the FlipOS by Stoa platform for single-family home investors, has gotten another $100 million securitization toward helping to close the housing gap, a press release said last week (Aug. 11).
The round was underwritten by Cantor Fitzgerald, a leading financial services firm working in real estate.
Housing supply is below demand, caused by multiple factors, including younger buyers looking for first homeownership, along with underbuilding after the 2007 recession.
The new securitization will let FlipOS by Stoa work with more professional real estate investors, growing and scaling the business.
This represents the second time Cantor Fitzgerald and Stoa have worked on this type of fundraising, after a $100 million securitization in November 2021.
“It’s a big deal that we were able to close this round of funding amid a fluctuating housing market,” says Or Agassi, co-founder of Stoa. “It speaks volumes about the underlying strength of our business model. We continue to scale rapidly but responsibly, maintaining strong unit economics. We’ve created a business that people want to invest in regardless of macroeconomic conditions.”
The housing market has been tough on everyone, with PYMNTS writing that there has been a number of factors making things hard on renters — both residential and small business.
Read more: Tough Rental Market Sees More Digital Payments, Cash Back, Discounts
According to the “State of the Nation’s Housing 2022” report, the Joint Center for Housing Studies of Harvard University (JHCS) said that there was a brief dip in 2020, but rent growth has been surging ever since, with a record 11.6% as of the end of 2021, the biggest year-over-year increase in two decades.
This has caused FinTechs and other companies trying to help with digital payments tools to add to renting help, including discounts. One such company is Rentdrop, which put out a new mobile app to help with digital rent payments, letting tenants and landlords get more choice in how rent is paid.
NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS WITH STRONG DEMAND FOR SUPER APPS
About: The findings in PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed the responses from 9,904 consumers in Australia, Germany, the U.K. and the U.S. and showed strong demand for a single multifunctional super apps rather than using dozens of individuals ones.