Divvy, a US-based provider of business expense management software, raised $165m yesterday from investors including electronics wholesaler Hanaco and PayPal Ventures, the investment arm of digital payment processor PayPal.
Whale Rock Capital Management, Schonfeld Strategic Advisors, New Enterprise Associates (NEA), Insight Partners, Acrew Capital and Pelion Venture Partners also participated in the series D round, which valued the company at $1.6bn.
Founded in 2016, Divvy offers businesses expense management software in addition to smart corporate cards that help them track expenses and corporate spending in real time. It said its monthly sign-ups have risen 500% since March 2020.
Financial Technology Partners advised Divvy on the round, which lifted its overall funding to more than $410m. Pelion Venture Partners led a $10.5m series A for the company featuring angel investors Josh James and Aaron Skonnard that closed in May 2018.
Insight Partners led a $35m series B round for Divvy two months later, and it added $200m in an April 2019 series C round led by NEA and backed by Pelion Venture Partners and Insight Partners.
Peter Sanborn, managing partner of PayPal Ventures, said: “With its compelling free software, Divvy is poised to become a key part of the financial nervous system for businesses.
“PayPal and Divvy share a goal of simplifying all that goes into running a business, which creates more time to focus on customers. We are thrilled to support Divvy’s continued expansion.”
