Divvy raises $165mn in Series D funding at a valuation of $1.6 bn

By Pavithra R

 Divvy, a leader in spend management, has announced securing $165 mn in Series D funding round. The new investment raised Divvy to a valuation of $1.6 bn joining it to the list of Utah tech unicorns. 

The investment round saw participation from new investors Hanaco, PayPal Ventures, Whale Rock, Schonfeld, and previous backers NEA, Insight Venture Partners, Acrew, and Pelion.

Divvy’s centralized platform combines seamless expense management software with corporate credit cards to assist businesses in managing their spend with real-time visibility and control over their budgets. The firm is being chosen by a rapidly growing number of businesses including tech companies like Noom, e-commerce merchants like Solo Stove and Rhone, vision care leaders like EyeCare Partners and iconic sports franchises like the Utah Jazz and the Atlanta Dream.

“The best in every vertical choose Divvy. 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,” said Blake Murray, CEO of Divvy. 

Divvy’s simplified process and cost saving benefits are vital for Main Street businesses that are navigating through the challenges and opportunities brought on by the COVID-19 pandemic. The firm witnessed nearly 500% increase in monthly sign-ups since March 2020.

The new investment, along with the addition of key investors validates the FinTech’s ambition to modernize financial processes by combining credit, vendor, and expense management into a single platform. The firm is planning to use the finance to invest heavily in product development and engineering in order to accelerate their future roadmap. The funding round empowers the company to continue to support businesses by providing the capital they need to thrive and cutting-edge financial software to manage it. 

“With its compelling free software, Divvy is poised to become a key part of the financial nervous system for businesses. PayPal and Divvy share a goal of simplifying all that goes into running a business, which creates more time to focus on customers. We’re thrilled to support Divvy’s continued expansion,” said Peter Sanborn, Vice President, head of corporate development at PayPal and managing partner of PayPal Ventures.