Leading spend management fintech Divvy recently joined the growing list of fintech unicorns that have risen during the pandemic. Offering corporate cards and free expense management software to businesses, the company’s monthly sign-ups climbed 500% since March 2020. In its latest slew of investors was payments giant PayPal Holdings Inc., giving the company a solid nod for growth in the space.
For companies that have managed to withstand forced closure due to financial pressure brought on in the past year, accessing capital and increasing control over finances has become critical to surviving in these times. Divvy has uniquely supported such companies by enabling managers to more efficiently develop and file expense reports. The software is provided for free, and Divvy earns its income from taking a small part of the fee merchants pay banks each time a customer uses one of its cards. Recently, the company has been focused on building out offerings that are focused on systemizing the process of paying bills.
Joining PayPal Ventures as new investors was Hanaco, Whale Rock, and Schonfeld. Previous backers participating in the $165 million funding round included NEA, Insight Venture Partners, Acrew, and Pelion. Following the Series D investment, Divvy is now worth $1.6 billion earning the company its unicorn status.
Speaking on the investment, Divvy Chief Executive Officer, Blake Murray shared in an email that, “Small businesses are the backbone of the United States and our software plays a significant role in ensuring that they not only survive, but thrive during these conditions.” Divvy’s centralized platform allows businesses to manage their spend with real-time visibility and control over their budgets.
Today, a large number of businesses are quickly adopting Divvy, including tech companies such as Noom, e-commerce merchants like Solo Stove and Rhone, vision care leaders EyeCare Partners, LLC, and sports franchises such as the Utah Jazz and the Atlanta Dream. Managing partner of PayPal Ventures and Vice President, Head of Corporate Development at PayPal, Peter Sanborn said, “With its compelling free software, Divvy is poised to become a key part of the financial nervous system for businesses,” lending weight to the company’s rapid ascent as it offers virtual cards in a time when their use for payments is surging.
With its valuation and key investment, Divvy intends to modernize financial processes by combining credit, vendor, and spend management into a single platform while investing heavily in product development and engineering in order to accelerate its future roadmap.