Divvy is a Utah-based financial technology company that provides expense management software and corporate credit cards to small and medium-sized businesses. In January 2022, the company announced that it had raised $200 million in a Series A funding round, led by Insight Partners and joined by existing investors including PayPal Ventures, Pelion Venture Partners, and NEA. This funding brings the company’s total funding to $255 million and values the company at $2.2 billion. In this article, we will take a closer look at Divvy’s growth and future plans, with a focus on the implications of the Series A funding round.
Divvy’s Growth and Market Position
Divvy was founded in 2016 by Blake Murray, Alex Bean, and Brandon Rodman with the goal of simplifying expense management for businesses. The company’s software integrates with a business’s accounting system to automate expense tracking, categorization, and approval. In addition, Divvy offers corporate credit cards to employees, with customizable limits and real-time spending alerts. The company’s user-friendly interface and focus on automation have helped it attract over 10,000 customers, ranging from small startups to midsize enterprises.
Divvy’s growth has been impressive, with the company’s revenue increasing by over 400% in 2021. The company has also expanded its workforce, growing from 300 employees in early 2021 to over 600 employees by the end of the year. Divvy has also expanded its product offerings, launching Divvy Capital in 2021, which provides short-term financing to businesses based on their accounts receivable. The company has also announced plans to launch Divvy Pay, which will allow businesses to pay vendors directly through the Divvy platform.
Implications of the Series A Funding Round
The $200 million Series A funding round is significant for several reasons. Firstly, it values the company at $2.2 billion, indicating that investors have confidence in Divvy’s growth potential. Secondly, the funding will allow Divvy to continue expanding its product offerings and workforce. In a press release, CEO Blake Murray stated that the funding will be used to “invest in product development, accelerate our global expansion, and scale our operations to meet the needs of our growing customer base.”
The Series A funding round also brings new investors into the fold, with Insight Partners taking the lead. Insight Partners is a New York-based venture capital firm with a strong track record of investing in high-growth software companies. The firm’s portfolio includes companies such as Shopify, DocuSign, and Qualtrics. Insight Partners’ investment in Divvy suggests that the company is viewed as a promising player in the financial technology space, with significant growth potential.
Future Plans for Divvy
With the Series A funding round completed, Divvy is well-positioned to continue its growth trajectory. The company has ambitious plans for the future, with a focus on expanding its product offerings and global footprint.
One area of focus for Divvy is the launch of Divvy Pay, which will allow businesses to pay vendors directly through the Divvy platform. This feature will streamline the accounts payable process for businesses, making it easier to manage invoices and payments. Divvy Pay is currently in beta testing and is expected to be launched to the public in the coming months.
Another area of focus for Divvy is global expansion. The company has already expanded beyond the United States, launching in Canada in 2020. Divvy is also planning to expand into other international markets, with a focus on Europe and Asia. This expansion will be supported by the Series A funding round, which will provide the resources needed to establish a presence in new markets.
In addition to expanding its product offerings and global footprint, Divvy is also committed to improving the user experience for its customers. The company plans to invest in product development to enhance its software and credit card offerings. This includes improving integrations with accounting systems, adding new features to the mobile app, and expanding the rewards program for corporate credit card users.
Divvy is also exploring new partnerships to expand its reach and capabilities. In 2021, the company announced a partnership with Bill.com, a leading provider of cloud-based financial management software. Through this partnership, Divvy customers can now manage their Bill.com accounts directly from the Divvy platform. Divvy is also exploring partnerships with other companies in the financial technology space to offer additional services to its customers.
The $200 million Series A funding round is a significant milestone for Divvy, providing the resources needed to continue the company’s rapid growth. With a valuation of $2.2 billion, Divvy is now one of the most valuable fintech startups in the United States. The company’s focus on automation, user experience, and global expansion have helped it attract a loyal customer base and establish a strong position in the market.
Looking ahead, Divvy is well-positioned to continue its growth trajectory. The company’s ambitious plans for product development, global expansion, and partnerships are supported by the Series A funding round, which provides the financial resources needed to execute on these plans. With the backing of Insight Partners and other investors, Divvy has the potential to become a major player in the financial technology space, providing valuable services to businesses around the world.