Photo: Divvy
Divvy, a Lehi, Utah-based expense management platform company, announced it has raised $200 million in funding led by NEA. Existing investors Pelion Venture Partners and Insight Venture Partners also participated in this round. Including this round, Divvy has raised $245.5 million in total equity financing and this is the third round of funding that Divvy closed in under a year — which validates the rapid growth of the company.
With this funding round, Divvy is going to accelerate product development and customer growth. And Divvy is going to further refine its smart money payment and expense platform.
“This investment allows us to deepen the Divvy platform and experience; furthering our mission to ‘make money smarter’ for all businesses. Beyond that, it gives us the resources we need to invest deeply in our team and platform in a way that greatly accelerates our vision. We’re also excited to welcome NEA to the Divvy community, and we share their commitment to helping reshape financial technology,” said Divvy co-founder and CEO Blake Murray in a statement.
And this investment further validates and gives fuel to Divvy’s vision to modernize financial processes by combining payments and expense management into one smart platform.
Last year, Divvy co-founder and CBO Alex Bean had told VentureBeat that the company was not planning on raising any more money after securing a $7 million seed round in December 2017. However, they started receiving 5-10 requests each week from VCs who were interested in meeting them.
Divvy launched only 15 months ago and it quickly established a user base of nearly 3,000 businesses. And there are hundreds of thousands of active credit cards being managed by Divvy that are backed by more than $1.6 billion in credit. And Divvy has seen quarter-over-quarter revenue growth of more than 30% and the company has not seen any signs of slowing down.
What does Divvy do? Using Divvy, customers are able to manage payments and subscriptions through integrated virtual and physical corporate credit cards. And each are tied to dynamic limits that are controlled by centrally managed budgets. Divvy also centralizes budget management, delegates payment processes, automates expense management, and provides financial leaders real-time control over spend.
“We are thrilled to support Divvy in their mission to modernize the way businesses handle money. In only a year in a half, Divvy has established itself as one of the fastest growing fintech companies we’ve ever seen. The company’s unprecedented growth is a testament to both the team and the compelling product they have built, which is alleviating a major pain point experienced by all businesses,” added NEA managing general partner Scott Sandell.
Sandell is joining Divvy’s board of directors in conjunction with this funding round. And NEA venture partner Benjamin (Ben) Narasin is joining as a board observer.
