![]() ![]() Now he's back with a 'self-driving approach' to software development that has Alphabet's backing. Read more: Jyoti Bansal sold AppDynamics for $3.7 billion in 2017. Brex, another buzzy business credit-card startup, has also enjoyed skyrocketing success and piqued investors' interest in a field long dominated by American Express. The 3-year-old Utah-based startup allows businesses to track expenses in real time and offers a credit-card product to customers. "We wanted to ride it out and see where it could go, but it became a deluge of venture groups saying, 'Holy cow look what you guys have built.'"ĭivvy did not disclose the company's valuation in the latest funding. "Our design wasn't to grow as fast as we can and raise a ton of venture capital," Divvy's cofounder and CEO, Blake Murray, told Business Insider. It raised a combined $45.5 million last year. This is the startup's third financing round in less than a year. Though tools for corporate expense accounts don't typically generate the same buzz or excitement as consumer apps, Salesforce's success in the enterprise business has inspired a new generation of enterprise startups - and a frenzy of investment.ĭivvy, a business expense-management platform, on Tuesday announced it had closed $200 million in series C funding led by the venture-capital firm NEA. Visit Business Insider's homepage for more stories.The company has added 3,000 business partners on its platform since January 2018 and is adding "hundreds more every month," Divvy's cofounder and CEO, Blake Murray, told Business Insider.The existing investors Pelion Venture Partners and Insight Venture Partners also participated in Tuesday's round. The company has raised $245.5 million since 2017. The venture-capital firm NEA led the round, which was Divvy's third in less than a year.Divvy, a platform for tracking business expenses, closed $200 million in series C funding Tuesday.“That’s the type of feedback we’re looking for - where we’re not just streamlining this expense report process, we’re completely eliminating the need for it,” Bean told VentureBeat.ĭivvy currently has just under 50 employees. The real sign that Divvy is gaining traction will be if companies completely eliminate their use of paid expense management platforms like Concur or Expensify. Of course, it’s easy for companies to commit to testing out Divvy for two or three months, given that it doesn’t cost anything. “Banks are looking at us as the software company that can build the user experience that they can’t,” Bean told VentureBeat.Īfter making its platform publicly available in December, Divvy now has more than 450 companies signed on as customers. Currently, the company issues Divvy-branded Mastercards through Wex Bank. The company makes money by taking a cut of the interchange fee the merchant issues to the bank after a credit card transaction is processed (Bean declined to say what percentage of the fee Divvy gets). ![]() Unlike other expense management platforms, Divvy is free for businesses to use. That way, if the website gets hacked and the company’s credit card number is stolen, the hacker can’t use that number to make any other purchases in the company’s name. The executive in charge of that part of the budget can then approve or deny the request in real time, eliminating the need to review all department purchases at the end of the month.ĭivvy also allows companies to generate a virtual credit card number for single online purchases, like a subscription. Divvy’s platform is similar to Venmo in that an employee can send a request via the Divvy mobile app for say, $100 to take a client out to lunch. Once a company signs up to use Divvy, the CEO and other designated executives receive physical Divvy cards that they can use just like a regular corporate card. “Alex and Blake have created a simple solution to fix a problem facing all companies, with a huge upside for growth.” “As a founder and CEO, I know all too well the hassles associated with business expensing, so I can relate to the problem Divvy is solving,” Skonnard told VentureBeat in an email. “At the end of the day, we just found the right partners,” Bean told VentureBeat in a phone interview. But then, Bean said, he and his cofounder - Divvy CEO Blake Murray - started receiving five to 10 requests each week from VCs interested in meeting with the pair. Divvy cofounder and COO Alex Bean told VentureBeat that his company wasn’t planning on raising any more money after securing a $7 million seed round in December. ![]()
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