Divvy is one of the biggest fintech success stories of the 2020s. Founded in late 2016 by Blake Murray and Alex Bean, the Lehi, Utah-based startup went from founding to a $2.3 billion exit in just 4.5 years. While several companies have reached $2.3B+ valuations in that time (see Appendix), few, if any have actually cashed in so quickly. The exit occurred in mid-2021 when Bill.com was looking to expand its offerings in the corporate card and expense management space.
Timeline of a fintech rocket ship:
- September 2016: Founded in Lehi, Utah by Blake Murray and Alex Bean
- March 2017: Launches corporate credit card and expense management platform
- Dec 2017: Raises $7M seed round
- April 2018: Adds automated expense reporting and budgeting tools
- May 2018: Raises $10.5M Series A
- July 2018: Raises $35M Series B
- April 2019: Raises $200M Series C; hits unicorn status
- Aug 2019: Hits milestone of 3,000 companies served and secures a major commitment from Credit Suisse to purchase up to $500M in receivables (Source: Press release)
- October 2019: Raises $200 million in a series C funding round, valuing the company at $1.6 billion. It is also named one of the top 100 private cloud companies in the world by Forbes.
- June 2020: Launches virtual cards; 2019 revenues of $32 million (source: Forbes)
- January 2021: Raises $165M series D with Paypal as lead investor bringing total capital raised to $418M
- May 2021: More than 10,000 customers, more than $1 billion in annual transactions (source: Nathan Latka)
- May 2021: Acquired by Bill.com for $2.3 billion in a cash ($665 million) and stock ($1.65 billion*) deal (source: SEC)
*Note: If the Divvy owners sold their Bill.com shares at the market peak (Nov 2021), they would have fetched around $3.7 billion. However, many shares could not be sold until after the 6-month lockup expired in December 2021. On the other hand, if they still owned it today, it is worth about $1.5 billion (as of July 2023).
Primary Pros & Cons
– HQ: Utah
– Founded: 2016
– Valuation: $2.3B (June 2021 exit, source SEC)
– Raised $418M ($165M since Jan 2021) (Crunchbase)
– Website visits (June 2023): 520,000 (SimilarWeb)
– Employees: 443 (Pitchbook), unchanged
– Articles citations: 81 (Crunchbase)
– Linkedin: 33,900 followers (443 employees)
– Trustpilot: 3.1 (443 reviews)
– iOS app: 4.7 (8,400 reviews)
Blake Murray was CEO (until Sep 2022). He has a background in finance and previously worked as a financial analyst at Goldman Sachs. Murray has also served as the chairman of the board of directors for the Utah Technology Council.
Alex Bean was CTO (until Dec 2021). He has a background in computer science and previously worked as a software engineer at Adobe. Bean has also served as the chairman of the board of directors for the Lehi Chamber of Commerce.
7-minute demo by Jacob Graf, Head of Production Operations, Divvy (Jan 2019)
*FAB score = Fintech Attention Barometer, a proprietary measure of company size calculated by Fintech Labs. Inputs primarily include funding, website traffic and employee count.