Corporate card and expense management platform Divvy is starting off the new year with new cash. The Utah-based company closed a $165 million series D investment, boosting its total funding to $417 million.
The new round also crowns Divvy with unicorn status; the company is now valued at $1.6 billion. New investors Hanaco, PayPal Ventures, Whale Rock, and Schonfeld participated, as well as previous backers NEA, Insight Venture Partners, Acrew, and Pelion.
Divvy will use the funds to “invest heavily in product development and engineering in order to accelerate [its] future roadmap.”
Divvy was founded in 2016 and offers free expense management software combined with corporate credit cards to provide its clients visibility and control over their budgets. Among the company’s clients are Noom, Solo Stove, Rhone, EyeCare Partners, the Utah Jazz, and the Atlanta Dream.
“The best in every vertical choose Divvy,” said Divvy CEO Blake Murray. “We’re not just building for tech startups—we help businesses across the country by providing the capital and financial software they need to thrive. We’re fortunate to be able to build for companies of all sizes and we’re grateful to everyone who has helped us get here.”
Because managing expenses is a key element in helping small businesses survive a financial crisis like the one brought on by COVID, Divvy is in the midst of a growth spurt. Since March of last year, the company has seen a 500% increase in monthly sign-ups.
According to TechCrunch, Divvy’s competitors in the space include Ramp, Teampay, and Airbase. Each of these startups has closed a major round of funding recently, indicating the expense management space is heating up. The fact that Divvy offers its software for free is likely to offer it a leg up over some of its other competitors.
“With its compelling free software, Divvy is poised to become a key part of the financial nervous system for businesses,” said Peter Sanborn, Vice President, head of corporate development at PayPal and managing partner of PayPal Ventures.
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