SAN FRANCISCO, Sept. 25, 2019 /PRNewswire-PRWeb/ -- Divvy, a platform that creates homeowners by building savings every month, today announces a $43-million Series B round, with GIC, Singapore's sovereign wealth fund, and Lennar, one of the nation's leading homebuilders, joining existing investors Andreessen Horowitz, Caffeinated Capital, and Max Levchin. The company has previously raised more than $100 million in debt financing; with this new raise, Divvy tackles its mission with combined equity and debt capital nearing $200 million.
"We are confident that Divvy will continue causing meaningful disruption in the real estate space, given its unique business model and real impact on wealth creation in America," said Alex Rampell of Andreessen Horowitz. "We know this injection of capital will fuel Divvy's further growth as it already outpaces the industry."
Divvy is working to create hundreds of thousands of homeowners in the U.S. and has already helped customers save, on average, more than $5,000 per household. This funding will help Divvy expand its team of real estate industry experts, increase investment in technology and purchase more homes to accelerate growth.
"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. We take things further, fundamentally changing who has access to the American Dream," said Adena Hefets, co-founder and CEO of Divvy. "We are very pleased to welcome the new investors. GIC has been investing in technology and real estate for a very long time and we look forward to tapping their insights."
Divvy believes in the value of homeownership, aiming to create a world where every person can own their forever home. Divvy helps renters build wealth and provide stability for their families, giving them the benefits of home ownership and appreciation.
"Divvy's mission to make homeownership more accessible really resonates with us," said Eric Feder, Managing General Partner for Lennar Ventures. "By investing in Divvy, we are accelerating our shared vision of giving more people access to their dream home."
The company partners with renters on their path to homeownership by buying the home they want and renting it back to them for three years while building the savings needed to own it themselves. From helping customers find the home they love to building the good financial habits of owning, Divvy provides a safe and reliable path to America's primary wealth builder.
"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," said Max Levchin, founder of HVF, where Hefets and co-founder Brian Ma incubated Divvy. "Divvy's rapid growth is proof that the model works -- and more importantly, is creating real wealth. We're excited to be a part of Divvy's next chapter and to watch their lead expand."
How it Works
Divvy partners along every step of the homebuying process, with the goal of helping renters transition into homeownership. Buying a home with Divvy starts with a five-minute application that results in an approved home-buying budget and an introduction to a real estate agent who helps find their forever home.
Once found, Divvy purchases the property, while the renter contributes an initial 2 percent of the home value to officially step onto the path to homeownership.
Approximately 25 percent of each subsequent rent payment goes toward saving for a traditional mortgage, so the new residents have a down payment to buy their home in three years. If renters change their mind, they can walk away from the home and get cashed out for their savings; if they want to buy it faster, homeownership can be accelerated. The flexibility of renting with the freedom and wealth building power of homeownership.
Divvy currently operates in Atlanta, GA; Cleveland, OH; and Memphis, TN; and will expand into new markets in the future.
About Divvy
Divvy Homes creates homeowners. Currently available in Atlanta, GA; Memphis, TN; and Cleveland, OH, Divvy is backed by GIC, Lennar, Caffeinated Capital, a16z, SciFi VC. Divvy was incubated in Max Levchin's startup studio HVF by Adena Hefets, previously of Square and Brian Ma, previously of Zillow, along with co-founders Nick Clark and Alex Klarfeld. With Divvy, renters select any home on the market, Divvy purchases it, and the renter builds homes savings with every payment. Divvy's mission is to create a world where every person has a stake in the neighborhood and home they live in.
Press Contact
Martha Shaughnessy
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(415) 987-0285
SOURCE Divvy Homes
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