The investment valued Divvy at $1.6 billion.

Big-name, new investors such as Hanaco, PayPal Ventures, Whale Rock, and Schonfeld participated in Divvy’s latest investment round. Previous investors such as NEA, Insight Venture Partners, Acrew, and Pelion also chipped in, catapulting the leader in spend management to unicorn status. (Business Day)

Divvy and the pandemic: “No one is coming. It’s up to us.”

In a blog, Divvy said it drew inspiration from the creative and inventive moves to counter the pandemic by companies such as PayPal (NASDAQ: PYPL), Square (NYSE: SQ), and Shopify (NYSE: SHOP).

Divvy hunkered down. It reduced acquisition costs by 75% and doubled its contribution margin. It, therefore, freed up cash to invest in customer teams, product development, and scaling up.

As a result, the startup could boost monthly sign-ups by nearly 500% since March 2020.

Making life easier for pandemic-hit businesses

Divvy’s centralized platform allows businesses to manage their spending with real-time visibility and control over their budgets if they use its free expense management software and corporate credit cards.

The fintech counts businesses such as tech company Noom, e-commerce merchants like Solo Stove and Rhone, vision care firms like EyeCare Partners, LLC, and sports franchises like the Utah Jazz and the Atlanta Dream among its users.

“The valuation of $1.6 billion and the addition of key investors validates Divvy’s ambition to modernize financial processes by combining credit, vendor, and spend management into a single platform,” Divvy said in a statement.

“Small businesses are the backbone of the United States and our software plays a significant role in ensuring that they not only survive but thrive during these conditions,” CEO Blake Murray said to BusinessDay.

Use of funds

With this round of funding, Divvy plans to invest in product development and engineering to accelerate its future roadmap.

It also plans to continue to support businesses by providing the capital they need and the financial software to manage it.

Related Story:  Revolut Launches ‘Pockets’ to Help Consumers Manage Spending