Divvy has earned a $200-million funding from venture capital firms, according to news reports.
TechCrunch said that the US-based fintech startup whose business is to help other companies in managing expenses secured the funds from Series C round led by NEA with the participation of Insight Venture Partners and Pelion Venture Partners.
This funding is the third venture round in only a year for the fast-growing startup, after getting a $10-million Series A last May and a $35-million Series B in July 2018, according to CrunchBase.
The fintech company’s success is likely the result of its impressive growth, and the latest capital raising should add fuel to its business boom.
In the past year, Divvy has seen its client base soar by over 300%. VentureBeat said. The start-up, which had just launched its platform in January 2018, now has 3,000 clients, way higher than the 700 it served last summer.
It has also rapidly grown its employees to 200, from merely 30 when it launched. Moreover, the firm currently records a 30% quarter-over-quarter growth in income.
Divvy’s rapid growth can be attributed to its unique niche model. The firm’s expense management platform gives extensive functionality for companies and their employees. By using the platform, businesses can provide employees with spending cards and lets them approve employee expense requests in real time. Other uses include allowing companies to manage team spending, create virtual credit cards, and produce automated reports on expenses.
Divvy’s free-to-use model is also a key element in wooing customer and investor interest. The fintech start-up — which partners with Wex Bank to issue Mastercard cards — makes revenue by taking a share of the interchange fees that merchants are charged for transactions instead of charging fees for its clients.
The firm’s success shows the ability of fintech companies to unbundle and re-bundle financial services to provide high-tech solutions to their clients.