Divvy is software start-up expense report and spend management company based in Utah that raised $55M in 2018 funding from a combined Series A and B. Divvy is hiring many new roles to meet their claimed 60% monthly revenue growth.
Divvy is trying to take reduce the friction of the entire expense report process for both users and clients. The Divvy pricing model is free for users and clients. The model actually gives 1% of card spend BACK to clients. Divvy corporate revenue comes from a share of the interchange fees between the merchants and credit card issues.
“Every time you spend using Divvy, that merchant pays a fee (called interchange) to MasterCard and the issuing bank. This fee is shared with us, by them.” – Divvy Pricing Page
The solution is focused more on small and mid-market clients that need an easy, and affordable, way to manage their T&E spend. Divvy’s approach is to manage spend at the credit card level – often a virtual Divvy card that can be matched to specific vendors. These virtual cards can be ‘burner’ cards for individual employees that can be instantly revoked or a ‘subscription’ card for use only on specific vendors accounts.
Divvy has recently partnered with corporate payments company WEX to offer solutions for workers that don’t want to use their own personal cards.
Some items to keep in mind if you are looking for a small to mid-market solution like Divvy. This could be a good solution if low to no ‘cost’ is important and you don’t have enough spend volume to negotiate directly with a credit card issuer. But you need to confirm if your organization needs to frequently cross charge or split allocations to different business units (aka cost centers) on a single transaction; if this is the case then make sure that Divvy functionality can support your business processes.