Divvy Homes, a US-based rent-to-own-home service provider backed by home construction firm Lennar, raised $110m yesterday in a series C round led by investment firm Tiger Global Management.
GGV Capital, Jaws Ventures, Moore Specialty Credit and unnamed returning backers also participated in the round, which took the company’s overall equity and debt financing to more than $500m since it was founded in 2017.
Incubated by startup studio HVF Labs, Divvy lets homes to tenants without the need for a mortgage, buying properties on behalf of potential owners in exchange for a deposit of up to 2% of the total cost. Some 25% of the monthly rent payment is then set aside for an eventual down payment.
The company will use the funding to expand into new markets and plans to acquire 70 million new customers across 20 locations in the United States by the end of 2021. It also intends to introduce related products that can facilitate the homebuying process.
Lennar Ventures, the corporate venturing subsidiary of Lennar, co-led a $34m series B round for the company with Singaporean sovereign wealth fund GIC in 2019, investing with Andreessen Horowitz, Caffeinated Capital and Max Levchin.
Andreessen Horowitz had led a $30m series A equity and debt financing round for Divvy in late 2018 that included Caffeinated Capital, DFJ and Levchin, after the three had jointly supplied $7m in seed funding earlier the same year.
