![]() Divvy Homes, the rent-to-own startup that. ![]() Marlize van Romburgh and Sophia Kunthara contributed. Divvy Homes, the rent-to-own startup that gained attention and investment from Tiger Global and other high-profile investors, is laying off 94 employees. Tech-enabled residential real estate brokerage Compass also went public in April. Other startups in the homebuying space that have raised notable venture funding this year include Doorvest, Propertymate and Rendin. “It just creates a more consistent customer experience to not be using as many third parties and bring a lot of this stuff in house,” she said in that interview.ĭivvy’s funding and growth follows a pandemic-fueled homebuying boom across the country that has also pushed up prices. Property Tech Startup Divvy Homes Raises 200M At 2B Valuation. Tiger Global Management Tiger Global Management is an investment firm that deploys capital globally in both public and. To date, its customers have exercised their option to purchase at a rate of roughly 40 percent, Divvy said this week.ĭivvy says it now operates in 16 markets and is expanding its footprint in Georgia, Texas and Florida, and works with about 25,000 real estate agents across the country.ĬEO Adena Hefets told Crunchbase News earlier this year that the company also plans to add adjacent homebuying services, such as in-house real estate agents, and title, escrow services and mortgage services. Divvy Homes raised 200000000 on in Series D. If a customer decides not to buy the home, they are able to cash out their savings, the company said. Customers then rent the home, with about 25 percent of the monthly payment going toward a future down payment, the company told Crunchbase News in February.Ĭlients can build up to 10 percent of the value of the home over the course of their three-year lease, but are also free to buy the home at any point during the lease. That growth, it said, attracted the attention of its lead investors, who it said “preempted the Series D.”Ĭustomers work with Divvy to find a home, and then the company purchases the home on their behalf with the customer contributing about 1 percent to 2 percent of the home’s value. The company said it has already closed more home sales this year than it did in total between its founding in 20. Its latest funding comes just six months after it raised a $110 million Series C funding, also led by Tiger Global. The company pays for the home that the customer selects and the customer provides a down payment of 1-2. ![]() The funding reportedly values San Francisco-based Divvy at $2 billion.ĭivvy aims to make homeownership more accessible via a rent-to-own model. Potential homeowners can complete an application on the Divvy Homes website and once they are approved, they will be given a budget for a home. Divvy Homes has raised a $200 million Series D funding led by Tiger Global Management and Caffeinated Capital, with participation from existing investors including Andreessen Horowitz, GGV Capital, GIC and Moore Specialty Credit.
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