But it appears that soon, at least one leading startup in this market will have cashed out. “When customers get it, they say, ‘Holy crap, this does more than we thought it was going to do,’” he said at the time. Last year, Murray, Divvy’s CEO, disputed that it directly competed with such rivals, arguing the market was fast-growing and big enough for multiple players. Earlier that month, Ramp raised $115 million at a $1.6 billion valuation. Brex raised $425 million at a $7.4 billion valuation in April. Globally, a record $1.77 trillion in M&A transactions were announced through the first four months of 2021-up 124% year-over-year from 2020, and 10% higher than the first four months of any other year on record, according to market data firm Refinitiv.ĭivvy is far from the only startup chasing expense reports and corporate credit cards or their equivalents. The news comes on the heels of a hot deal-cutting quarter. The company announced a $165 million funding round that month, after raising $200 million in April 2019. The pandemic boosted Divvy, which has said new customers sign-ups surged 500% from March 2020 through January 5, 2021. Later in April, Brex announced that it had notched $425 million in a Tiger Global-led Series D investment round.Founded by Blake Murray and Alex Bean in 2015, Lehi, Utah-based Divvy took in more than $32 million in revenue in 2019, the company told Forbes in a 2020 profile. The expanded solution will enable businesses to digitally transform their financial operations and automatically manage accounts payable, accounts receivable, and corporate card spend all in one place. New York-based Ramp generates revenue from taking a part of interchange fees in addition to a monthly charge from customers harnessing more premium software features. The acquisition of Divvy supports ’s mission to make it simple to connect and do business. Ramp says that the infusion will be harnessed to help with expansion and product development, like the addition of new payment functionalities such as sophisticated card controls, automated savings and accounting automation. In early April, corporate card and expense management startup Ramp announced that it had landed $115 million in new funding and achieved a $1.6 billion valuation. The firm said its platform links “free expense management software with corporate credit cards.” Divvy said a press release at the time that its “simplified process and cost-saving benefits are especially important to Main Street businesses that are navigating the challenges and opportunities brought on by the COVID-19 pandemic.” In January, Divvy announced that it had notched $165 million in a funding round. The report comes as a blockbuster $1.77 trillion in merger and acquisition (M&A) transactions were revealed through the first four months of this year, Forbes reported. The company garnered over $32 million in revenue in 2019, Forbes reported, citing a 2020 profile. However, reportedly went to the startup previously with an offer in excess of $2 billion, according to Forbes, which cited an unnamed source.ĭivvy, which is based in Lehi, Utah, was established in 2015 by Alex Bean and Blake Murray. At that time, is set to post its quarterly earnings, Forbes reported.Īccording to the report, the possible transaction's conditions are not known. The firms could potentially be intending to reveal the arrangement on Thursday (May 6) at the earliest. Expense management company Divvy is reportedly the target of a potential acquisition, according to Forbes.īill.com, which serves small and medium-sized businesses (SMBs), is said to be the anticipated acquirer of Divvy, Forbes reported, citing two unnamed sources.
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