Divvy Secures \(165M Funding at \)1.6B Valuation Amid Spend Management Boom
Utah-based spend management startup Divvy has raised \(165 million in a latest funding round, catapulting its valuation to \)1.6 billion. The investment was led by Hanaco, Schonfeld, PayPal Ventures, and Whale Rock, alongside existing backers. This marks another milestone for the fast-growing fintech company, which previously secured \(200 million in April 2019 at a \)700 million valuation—more than doubling its worth in under two years.
Why Divvy’s Growth Matters
Divvy is part of a thriving wave of Utah-based tech innovators, joining the ranks of companies like Podium and Qualtrics. Its success underscores the state’s emergence as a hotspot for high-growth startups disrupting traditional industries.
The Red-Hot Spend Management Sector
The corporate spend management space—encompassing corporate cards and expense-tracking software—is experiencing explosive demand as businesses modernize financial operations. Divvy’s latest funding follows a surge in compe***** activity, including:
- Ramp: Raised \(30M in December 2020, reporting \)100M in processed spend within 18 months.
- Airbase: Achieved 250% ARR growth and 700% payment volume growth.
- Teampay: Saw 320% ARR growth and an 800% increase in total spend since its Series A.
Divvy’s Competitive Edge
Divvy differentiates itself with a free-to-use model, generating revenue through interchange fees rather than software subscriptions. Compe*****s like Teampay and Airbase, meanwhile, charge for their platforms while also earning from transaction volumes.
What’s Next for Divvy?
The company plans to channel its new capital into product development and engineering, aiming to consolidate credit, vendor management, and spend tracking into a unified platform. As Divvy’s CEO stated:
“This funding validates our mission to revolutionize financial workflows. We’re doubling down on innovation to deliver even greater value to businesses.”
The Bigger Picture
The spend management sector shows no signs of cooling off, with investors pouring capital into startups addressing corporate financial inefficiencies. As businesses prioritize cost control and transparency, expect continued momentum—and competition—in this space throughout 2021 and beyond.
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