Divvy Homes secures $30m in debt, equity round

Divvy Homes, a PropTech platform which helps consumers buy a house, has secured $30m in a new funding round.

The capital injection was made up of both debt and equity. Andreessen Horowitz served as the lead backer, with participation also coming from the company’s seed investors Caffeinated Capital, DFJ, and Max Levchin.

Divvy is a homeownership platform that enables renters to build credits while they are renting. A home owner chooses a home, Divvy then purchases the house for them and renters will then live in the home building equity credits, paying down debts and building a steady income to be mortgage-ready within three years.

The buyer will provide 2 per cent and then make monthly payments in rent and equity, with the equity building credit. After three years, Divvy offers the renter to buy out the remaining debt on the house through a mortgage, using the credit as a down payment.

In a blog post from the company it said, “Reinventing housing to be radically more accessible and customer-first will take a village. We’re excited to lead the charge but will need the help of real estate professionals, community leaders, capital partners, and governments to succeed.

“We also believe the only way to scale this massive operation is with technology. We’re pursuing an enormous opportunity to make a lasting impact on how generations after us will live — if you’re as passionate as we are about helping families transition into homeownership, please consider joining us.”

The company picked up a $7m investment at the start of the year, with Caffeinated Capital acting as the main investor. Divvy raised the capital to support the expansion of its operations to Cleveland and Atlanta, as well as building out its team.

Earlier in the year, Andreessen Horowitz contributed to the $32m Series B round of blockchain solution developer Axoni. The company raised the capital to enhance its data synchronisation technology and grow its infrastructure product suite.

Copyright © 2018 FinTech Global

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