Divvy, an expenses management platform for businesses, has raised $165 million in a series D round of funding at a $1.6 billion valuation.
The raise comes amid a growing battle to infiltrate the corporate spend space, with the likes of Ramp recently closing a $30 million tranche and Brex securing $150 million. Divvy said that 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 of their spending.
While many companies still use old expense reporting systems built for the pre-cloud era, Divvy focuses on bringing as much automation to the table as possible through its cloud-based platform. Founded in 2016, the company combines a “smart” credit card for employees with expense management software within a single platform. Managers and finance teams are given immediate insights into how budgets are being spent across the company, while they can allocate specific funds to teams or individuals, all the while bypassing the need to manually file expense reports or reimburse money spent from workers’ own pockets.
The software itself is free, but Divvy takes a part of 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, and its latest round included PayPal Ventures, Hanaco, Insight Venture Partners, Whale Rock, Schonfeld, NEA, Acrew, and Pelion.
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