Divvy Homes, a San Francisco, CA-based homeownership company, raised $110m in Series C equity funding.
The round, which brings the total debt and equity capital has raised to over $500m, was led by Tiger Global Management, with participation from GGV Capital, Moore Specialty Credit, JAWS Ventures, and existing investors.
The company will use the proceeds of this equity raise for further market expansion, with plans to serve more than 70 million Americans in over 20 markets by the end of the year, and launch adjacent product offerings.
Founded in 2017 and led by Adena Hefets, co-founder and CEO, Divvy supports future homeowners by purchasing a home on their behalf and renting it back to them while they build equity in the property.
Divvy partners with customers along every step of the home buying process, with the goal of helping renters transition into homeownership. Buying a home with Divvy starts with a quick application that results in an approved home buying budget and an introduction to a real estate agent.
Once the customer finds their forever home, Divvy purchases the property, while the renter contributes an initial 1-2 percent of the home value to officially step onto the path to homeownership.
Approximately 25 percent of each subsequent monthly payment goes toward saving for a down payment, setting customers up to apply for a traditional mortgage when they are ready. A customer builds up to 10% of the value of the home over their three-year lease, but they can buy the home at any time. If a customer changes their mind, they can walk away from the home and get cashed out for their savings.
Over the course of 2020, the company expanded operations to 16 total markets. The program is currently available across 16 major U.S. metropolitan areas: Atlanta, GA; Cincinnati, OH; Cleveland, OH; Dallas, TX; Denver, CO; Ft Lauderdale, FL; Houston, TX; Jacksonville, FL; Memphis, TN; Minneapolis, MN; Miami, FL; Orlando, FL; Phoenix, AZ; San Antonio, TX; St. Louis, MO; and Tampa, FL.