LEHI — A Utah tech company born from a father's dilemma with sharing a bank card with his son for a food purchase has blossomed into a novel software solution that's looking to revamp how companies handle their expense account transactions.
And on Friday, Divvy, which officially began doing business in January, announced a $10.5 million Series A funding round led by a local venture capital firm and including a trio of well-known Utah tech entrepreneurs.
The capital infusion, which follows $7 million in private startup funding, will help the company accelerate its already stellar growth arc. In just a few months, Divvy has built a customer portfolio numbering in the hundreds and including some Utah tech heavy-hitters like Domo, Pluralsight, Vivint Smart Home and Cotopaxi.
Company co-founder and BYU grad Alex Bean said the company has fundamentally re-thought, and re-built, how to handle expense processing for any business.
"Everyone right now is using a mix of personal and corporate cards," Bean said. "And they all know that keeping track of accounts, the approval process and reimbursements pile up and need to be reacted to at the end of every month.
"Divvy is flipping that process on its head and giving users a proactive, front-end system."
Bean said the company has built a software platform to manage the full breadth of expense management that also enables users to create unique identifiers for every vendor and discrete credit card numbers for each employee that needs one. Purchase limits and restrictions can be pre-set and dynamically altered when necessary. Also, the product is free. Divvy earns its money on the banking side of its transactional system
Say your company is sending 10 people to Las Vegas for a conference. The total budget for the trip is $15,000. Divvy will automatically keep track of each of those individuals' spending and expenses and, in real-time, ensure both that those expenditures are on approved items as well as automatically track the combined running total to keep the trip on budget. The system also allows real-time decision-making for unexpected expenses so the group can, for example, get an instant approval when it decides taking themselves and clients to the Cirque de Soleil is a must-do activity.
Divvy co-founder and CEO Blake Murray said the company is shooting for a level of product performance that will not just make the product the top choice for expense management, but the only choice.
"We are positioning ourselves to be the one-stop shop for business spending," Murray said. "We are removing barriers of entry by providing a free yet powerful solution for businesses as they spend. We’re passionate about helping every business spend smarter.”Comment on this story
Cottonwood Heights-based Pelion Venture Partners is leading the Series A round, which will include personal investments from Domo CEO Josh James, Pluralsight CEO Aaron Skonnard and Traeger Grills CEO Jeremy Andrus.
Costa Vida Fresh Mexican Grill's chief operating officer, Jeff Jacobson, said Divvy is streamlining the task of managing expenses for the Salt Lake City-based chain.
"We are very excited to be a part of the Divvy customer family," Jacobson said. "We feel that the enhancements that the Divvy platform has to offer in terms of us managing our expenses will greatly impact the efficiency of our employees as well as the accuracy of their spending.”