In early May 2021, Bill.com acquired corporate expense management software developer Divvy. The deal is valued at $ 2.5 billion.
In 2015, Blake Murray ran 6 establishments in the Pizza Studio chain. He was constantly annoyed by the accumulated reports from employees, which made it difficult to track expenses.
So he came up with an idea for a startup: a financial technology that would help small businesses manage their accounts.
Most small businesses are not qualified for corporate cards, and large employers are reluctant to issue credit cards for employees. Therefore, many Americans use personal money for business expenses, which can lead to unnecessary spending for the company and complicate control over financial transactions.
Divvy solves the problem with the following features.
Control of spending. Each employee can get a credit card with a limit for business expenses. The financier can determine the budget of the project in advance, and then divide it among the employees. Such a scheme makes it impossible to exceed the limit - for this you need to get permission from the manager.
Track expenses. The program with a convenient and intuitive interface allows you to track your expenses in real time. This eliminates the need to check old receipts.
Both individuals and legal entities can become a Divvy user.
The platform is completely free for companies and their employees. This sets the startup apart from competitors like Concur and Expensify, which charge based on user count or on a monthly basis. The company makes money by taking part of the funds from the purchase.
In total, Divvy raised $ 417.5 million in investments. New Enterprise Associates, Insight Venture Partners, NEA, Pelion Ventures, PayPal Ventures, Album VC, Hanaco, Whale Rock, Schonfeld and others have invested in the startup.