Utah’s Divvy gets $35 million for its free, real-time expense platform
Divvy launched its first product out of beta just six months ago, less than 1 percent of customers have dropped out.
Expense software startup Divvy today announced that it has raised a $35 million round led by New York-based private equity and venture capital firm Insight Venture Partners. That brings the total amount of funding raised for the Lehi, Utah-based startup to $57 million.
Taking some cues from Venmo, Divvy has created an expense platform that allows employees to send a spending request to their boss and receive approval in real time via a mobile app or desktop platform. That eliminates the need for employees to submit an expense report at the end of the month. Divvy partners with Wex Bank to issue Divvy-branded Mastercards and makes money by taking a cut of the interchange fee generated after a transaction.
Murray also said that the company plans to use the new round of funding to build a regional sales team in California — its first outside of Utah — as well as adding to its product, marketing, and engineering teams. Murray told VentureBeat that Divvy is currently spending about $60,000 per month on marketing, but will certainly increase that budget in the coming months.
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