Split Pay Raises $125M to Scale AI Cash-Flow Underwriting Platform

Fintech platform Split Pay has raised $125 million in combined Series A and Series B funding to scale its payment-splitting infrastructure. The capital injection allows the company to expand its reach beyond rental payments into mortgages, auto loans, and student loans.

The funding rounds were led by Khosla Ventures, with participation from Thrive Capital, Max Levchin, MetaProp, Alpaca VC, Moderne Ventures, Intuit Ventures, and SciFi VC. The platform allows users to split their largest monthly obligations into installments; the landlord or loan servicer receives the full payment on the due date, while Split Pay floats up to 50% of the cost for up to 30 days.

A Shift in Underwriting

Formerly known as Rent App, the company rebranded to reflect a broader mission of managing recurring high-cost bills. Central to its growth is a departure from traditional FICO credit scores. Instead, Split Pay utilizes an AI-driven cash-flow underwriting model that analyzes bank account activity—including income, spending, and savings—to assess risk.

According to company data, this model utilizes 50,000 variables and has maintained a 97.5% repayment rate across $350 million in originations. This approach specifically targets consumers under 40 who possess the income to afford their housing but struggle with the timing of monthly payments relative to bi-weekly payroll cycles. The company's growth reflects this demand, with the business reportedly growing 70x over the previous 12 months. This trajectory is encapsulated in the company's slogan: "Banks move money, we move time."

Market Implications

The service addresses a systemic mismatch between the monthly nature of housing costs and the bi-weekly frequency of most payroll cycles. By providing short-term liquidity without requiring a mortgage refinance or direct lender integration, Split Pay is betting that payment timing is a significant enough pain point to sustain a major financial services business.

However, this flexibility comes at a cost to the consumer. The platform charges a $10 monthly subscription fee plus 2% of the entire bill. For users with high monthly expenses, these recurring costs represent a significant premium for the ability to align their outflows with their paychecks.

Future Outlook

With the new funding, Split Pay intends to aggressively scale its AI underwriting platform to handle a wider array of debt instruments. While the company has proven its model with rental and mortgage payments, the expansion into auto and student loans will test whether the cash-flow model remains as effective across different types of credit. Observers will be watching to see if the 97.5% repayment rate holds as the company moves into these more diverse loan categories.