Divvy

Divvy is an American startup that offers companies a cloud service to provide their employees with corporate credit cards to pay for work-related expenses. A special feature of the startup is the readiness to simplify the process of submitting applications for corporate credit cards, as well as the provision of a system for compiling expense reports, which allows you to reduce the amount of manual data entry that employees must perform. Divvy raised $417 million from Insight Partners, New Enterprise Associates and others (by May 2021).

History

2021: Bill.com bought Divvy for $2.5 billion

In early May 2021 Bill.com , she bought a developer software to manage Divvy corporate expenses. The deal is estimated at $2.5 billion.

The provider of software for corporate finance Bill.com said that the transaction will be funded by cash in the amount of $625 million and ordinary shares in the amount of $1.875 billion. In a presentation to shareholders, the company explained that the deal with Divvy is expected to provide a return on investment, more than doubling the targeted market in the United States. Bill.com sees opportunities for further growth through the expansion of the Divvy platform, which allows companies to issue credit cards for their employees, internationally.

Bill.com acquired Divvy for $2.5 billion

The company expects the benefits of the product to increase revenue. Bill.com, and also emphasized the possibility of selling Divvy service to more than 115 thousand existing customers. Bill.com also intends to promote its own corporate finance platform for more than 7 thousand Divvy customers.

The cost of the transaction is more than four times the total amount of financing raised by Divvy by May 2021. In addition to Insight Partners and New Enterprise Associates, another investor who can benefit from the purchase is PayPal Holdings, which in early 2021 acquired a stake in Divvy for $1.6 billion.^[1]

Notes