One of the foremost reasons Atlanta has grown as a popular destination for businesses and individuals alike is its low cost of living compared to larger metros. The city boasted a population of over half a million people in 2020 and has grown about 25 percent since 2010. The city is consistently welcoming new residents, and in an effort to keep it that way, a local startup is working toward increasing the supply of affordable housing. The startup also recently secured fresh funding to help further its mission.
PadSplit raised $20.5 million in its Series B funding round, announced on Wednesday. Operating in the affordable housing space, the company offers renters furnished rooms in single-family homes or apartments. The capital raise came from 13 investors, according to the filing.
The startup’s marketplace platform gives members the option to choose a temporary residence based on personalized filters, including price range, preferences for shared or private bathrooms, bed size and other features. The company also aims to establish most of its properties near public transit, according to its website, and it performs background screens on all members. With no minimum credit score or security deposit necessary, users pay a weekly bill that covers their room and utilities like Wi-Fi.
Most property owners that use PadSplit’s platform are professional real estate investors, according to Atlanta Inno. These owners receive a portion of the members’ rent. Since its founding in 2017, PadSplit has created more than 2,500 shared housing units and provided homes to over 4,800 people.
“At our core, PadSplit aims to create universal access to opportunity for anyone in search of one. We believe that affordable housing forms the basis of that opportunity,” the company said in a blog post. “The human need for shelter is not only a basic need, [but] it’s also the most expensive segment of a typical budget. As such, access to housing that’s affordable provides a foundation for all other opportunities.”
With its new funding, PadSplit is investing in expansion. Currently available in Georgia, Louisiana, Virginia and Wisconsin, the company wants to grow its number of properties with a focus on Texas and Florida, according to Atlanta Inno.
PadSplit is currently hiring for roles spanning teams like sales, operations and marketing. The startup is backed by several investors, including Core Innovation Capital, Impact Engine and Mark Cuban Companies.