Divvy, a US-based homeowner savings platform, has raised $43 million in Series B funding from Singapore’s sovereign wealth fund, GIC, and other investors.
According to a statement, the other investors joining the round include Lennar, one of the largest home construction companies in the US, Andreessen Horowitz, Caffeinated Capital, and Max Levchin.
Launched in 2017, Divvy aims to transition home renters to be homeowners. It assists renters along the entire homebuying process – including budgeting, introducing a real estate agent, and providing a flexible savings scheme that translates a renter’s payment into savings for a traditional mortgage.
According to Divvy, it has helped its customers save over $5,000 on average per household and aims to create hundreds of thousands of homeowners in the US.
The fresh round of capital will be used to expand Divvy’s team of real estate industry experts, invest in technology and purchase homes. Divvy currently operates in Atlanta, Cleveland, and Memphis with plans to expand into new markets.
“Proptech is flooded with startups targeting high net-worth individuals, but Divvy’s model addresses the needs of the vast majority of Americans, often ignored by Silicon Valley. Divvy’s rapid growth is proof that the model works — and more importantly, is creating real wealth,” said Max Levchin, founder of startup studio, HVF, where Hefets and co-founder Brian Ma incubated Divvy.
Adena Hefets, co-founder and CEO of Divvy said: “We are forging a new path to homeownership, a life-changing accomplishment currently unavailable to many Americans. Much of early real estate tech stopped at simply digitizing the archaic, data-heavy processes buyers encounter along the way.”
Divvy last raised a $30 million Series A round led by Andreessen Horowitz in October last year, joined by Caffeinated Capital, DFJ, and Max Levchin. The US company has also previously raised over $100 million in debt financing. It has combined equity and debt capital of close to $200 million.
