Divvy, a Utah-based corporate card and expense-management software provider for small businesses, has become one of this year’s first fintech unicorns.
The start-up announced a $165 million Series D funding round with participation from new investor PayPal Ventures. It pits Divvy at a valuation of $1.6 billion.
The new capital comes from fellow newcomers Hanaco, Whale Rock, and Schonfeld. As well as from existing investors NEA, Insight Venture Partners, Acrew, and Pelion.
Divvy’s customer base includes weight loss firm Noom, e-commerce merchants like Solo Stove and Rhone, and sports franchises like the Utah Jazz and the Atlanta Dream.
“We’re not just building for tech startups,” explains Blake Murray, Divvy’s CEO. The fintech claims to have driven up its sign-ups by 500% monthly since March 2020.
Divvy claims to cut down the time it takes small business managers to process their expense reports.
Its software is free, so Divvy makes its money from the fee merchants pay banks every time they use the start-up’s card.
More recently, Divvy has fleshed out offerings around paying bills.
“Small businesses are the backbone of the United States,” Murray tells Bloomberg.
“Our software plays a significant role in ensuring that they not only survive, but thrive during these conditions.”
Long-term, Divvy says its ambition is to modernise financial processes “by combining credit, vendor, and spend management into a single platform”.
With its Series D round of funding, the start-up wants to “invest heavily” in product development and engineering.