Divvy, which offers a business expense management platform, has raised $165 million at a $1.6 billion valuation.
The series D raise comes amid heated competition in the space, with the likes of Ramp recently closing a $30 million tranche and Brex securing $150 million. Divvy said it has seen a 500% increase in monthly sign-ups since the global lockdown started last March as businesses seek capital and greater visibility and control over their spending.
While many companies still use expense reporting systems built for the pre-cloud era, Divvy focuses on introducing as much automation as possible through its cloud-based platform. Founded in 2016, the company combines a “smart” credit card for employees with expense management software in a single platform. Managers and finance teams are given immediate insights into how budgets are being spent across the company, and they can allocate funds to teams or individuals. All of this bypasses the need to manually file expense reports or reimburse workers for expenditures.
The software itself is free, but Divvy takes part of a fee that merchants pay to banks for each transaction.
The company had raised just north of $250 million before now, the bulk of which came via its $200 million series C round in 2019. Its latest round included PayPal Ventures, Hanaco, Insight Venture Partners, Whale Rock, Schonfeld, NEA, Acrew, and Pelion.
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