![]() Corporate credit cards are never given to everyone at a company. Its product is aimed at whole companies, instead of just regular recipients of corporate cards (executives, founders, etc.). Instead, Divvy wants to provide teams and individuals with access to set spend for projects and more, essentially providing access to slices of the firm’s credit to employees. It’s worth noting at this point that Divvy told this publication that it does not want to become a bank.ĭivvy also says that it isn’t competing with Brex, a buzzy tech startup which is working vertical-by-vertical to improve corporate credit cards. ![]() This model should be familiar to regular Crunchbase News readers as a similar monetization model to what Chime ( more here) and Acorns ( more here) use. Notably, Divvy manages to charge nothing for its service as it makes money from interchange fees (a small cut of what users spend on their Divvy cards). That means employee access to company credit with company-set limits, further corporate card distribution, and expensing help. ![]() The firm provides expense and budget tooling for businesses. So, I got on the phone with the company to try and figure it out. Toss in the company’s quarter billion dollar debt financing and its new, $200 million equity round and the company has accreted just over $500 million in capital to-date.Įven in today’s era of large rounds and venture pre-emption (VCs going to companies, looking to invest, instead of companies going to VCs, looking for investment), Divvy’s capital story is fast. The capital, led by NEA with participation from Insight Venture Partners and Pelion Ventures Partners, closely follows Divvy’s recent debt raise from earlier this year.ĭivvy has raised capital quickly, including a December 2017 Seed Round and both its Series A and Series B in 2018. Brex, worth a multiple of the younger startup, is presumably above that mark.This morning Divvy, a Utah-based startup focused on business expenses and budgeting, announced that it has completed a $200 million financing round. Ramp, for example, disclosed that it is nearly on a $1 billion spend-managed run rate. More on that shortly, but we wanted to update this article ASAP. Brex announced, in a separate release so we missed it at first, that they have put together a new service called Brex Premium that costs $49 per month. Airbase, in contrast, charges for its software.ĭon’t expect the software arms race between corporate spend startups’ unicorns to lead to more corporate spend startups deriving software revenues in addition to their current income sources each is growing their spend rapidly enough to warrant more time with their foot on the customer growth pedal over working to juice more per-customer revenue in the short-term. Far from its roots in merely offering perk-laden corporate cards to growing companies, Brex and its myriad rivals - including Utah unicorn Divvy, Airbase and others - are building software suites around their core plastic efforts to help companies manage all elements of their spending.Ī growing rift is showing in how, compared to some rivals, the categories’ largest players, including Brex, Divvy and Ramp, forgo charging for their software, content to eat off other revenue sources including interchange. The dueling rounds raised by Brex and Ramp underscore how active their product category is proving to be. According to Crunchbase data, Brex’s mid-2020 Series C valued the company at just over $3.0 billion, including the investment’s $150 million in issued equity. ![]() The new capital marks Brex’s largest fundraise to date, and was compiled at a valuation that is more than double its most recent private valuation. Mere weeks after rival corporate spend startup Ramp announced that it raised a two-part round worth $115 million at a $1.6 billion valuation, this morning Brex disclosed a $425 million Series D led by Tiger Global. ![]()
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