(Bloomberg) -- Divvy, the financial-technology company that offers corporate cards and expense-management software to small businesses, said it's now valued at $1.6 billion after raising money from investors including PayPal Holdings Inc.
The $165 million fundraising round, which also included participation from previous backers including NEA and Pelion Venture Partners, made Divvy a unicorn, meaning it has a valuation of more than $1 billion.
Thousands of small businesses have permanently closed during the pandemic after being forced to shut down to stem the spread of Covid-19. For those that remain, accessing capital and gaining control over finances have been paramount. Demand for Divvy's products has surged during the pandemic, with monthly sign-ups climbing 500% since March, the company said in a statement Tuesday.
“Small businesses are the backbone of the United States and our software plays a significant role in ensuring that they not only survive, but thrive during these conditions,” Divvy Chief Executive Officer Blake Murray said in an email.
Divvy says its technology is designed to cut down on the time it takes managers to process expense reports. It provides its software for free, taking a small part of the fee merchants pay banks each time a customer uses one of its cards. More recently, the company has been focused on building out its offerings focused on paying bills.
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