Corporate expense management company Divvy announced a $200 million fundraise on Tuesday (April 30) led by NEA.
Reports in Forbes said Divvy’s Series C funding is its third round closed in less than a year, with a total of $245.5 million raised by the company. Unnamed sources told the publication that Divvy’s valuation is now as high has $600 million, three times its estimated valuation last July.
Pelion Venture Partners and Insight Venture Partners also participated in the round, which backs Divvy‘s small and medium-sized business (SMB)-targeted expense management software connected to virtual corporate cards to track spending.
“Divvy has hit on a compelling product, addressing a pain point experienced by every business in the world,” said NEA Managing General Partner Scott Sandell in a statement. “With their business credit card plugging directly into their expense management system, Divvy offers a level of simplicity and richness of tools no other company can match.”
He added, “The excitement for their product is validated by the incredible traction they have gained in the market after only 15 months.”
Divvy plans to use the investment to accelerate product development and attract more customers, reports said. Co-Founder and Chief Executive Blake Murray told reporters that he also plans to use some of the funding to invest in its current team.
He told the publication Divvy’s user experience and spend controls are key traits that help the firm separate itself from the competition.
“It feels like you’re sending money to and from a friend but it’s a co-worker or contractor,” he said. “The credit card is the big differentiator.”
Last month another startup targeting business expense management with integrated virtual commercial card technology, Brex, raised $100 million in debt capital.