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Business Operations Business Models

How Does Divvy Make Money (Business and Revenue Model)

The Divvy business model

Divvy logo
Here’s what you should know:
  • What is Divvy, and how does Divvy work?
  • How does Divvy make money?
  • Interchange Fees (Divvy Visa Credit Card)
  • Divvy funding, net worth, and valuation
  • Divvy profit and revenue
  • What is the Divvy business and revenue model?
  • Divvy subsidiaries, acquisitions, and exits

How does Divvy make money and how is it free to use? Well, here is a full, in depth, breakdown of their main revenue stream and services they offer, as well as the Divvy business and revenue model, how much Divvy makes per year, and how Divvy works.

What is Divvy, and how does Divvy work?

Divvy is a platform that helps small businesses grow through products like business lines of credit, budgeting and expense software, and more.

Founded in 2016 by Alex Bean, Blake Murray, and Justin Thompson, Divvy went on to later get acquired by Bill.com on May 6, 2021, for $2.5 billion.

Since that time, Divvy now has more than 15,000+ customers ranging from small and medium-sized businesses across every state in America using Divvy.

So, how does Divvy work? To use Divvy, you can download their app on the Apple App Store or Google Play store, or visit their website.

From there, you can simply apply for an account by filling out a Divvy application related to your business’s information such as annual revenue, years in business, etc. If approved for an account, you can choose from the various Divvy products you’re interested in for your business.

Some of Divvy’s competitors include StripeSquare, Brex, and other fintech companies that offer fast growth business products.

Divvy App in Apple App Store | Divvy business Model | How Does Divvy Make Money? | How Does Divvy Work?
Source: Apple App Store | Divvy

How does Divvy make money?

According to Divvy, Divvy has more than 15,000+ customers across every state in America using Divvy. So how does Divvy make money off of all those customers?

Below is a breakdown of how much money Divvy makes and its revenue model. Including their main revenue stream and how much they charge for their services.

Here is how Divvy makes money in 2022

Divvy has a revenue model that makes money in just one (1) way; interchange fees recieved from their Divvy business credit card.

#1. Interchange Fees (Divvy Visa Credit Card)

At this time, Divvy makes all of its money off of the interchange fees they receive from their Divvy business credit cards that are issued to qualifying business customers.

How does Divvy make money from interchange fees? Divvy makes money whenever a Divvy cardholder swipes their Visa issued credit card.

When this happens, Visa charges the merchant an interchange fee between 1.15% + $0.05 to 2.40% + $0.10 of the charge amount. From that, Visa gives a percentage of its interchange fee revenue to Divvy. Although it’s unclear what percentage Divvy receives from Visa.*

* Forbes estimates that Divvy likely receives around half of every transaction fee.

Divvy Visa Credit Card | Divvy Business Model | How Does Divvy Make Money | How Does Divvy Work
Source: Divvy

Divvy funding, net worth, and valuation

According to Divvy’s Crunchbase profile, Divvy has raised $417.5 million over 5 rounds.

On May 6, 2021, Divvy was acquired by Bill.com for $2.5 billion.

Divvy profit and revenue

Although Divvy has never publically released any official reports in regard to company earnings. You can see from Bill.com’s deck deal of the acquisition, Divvy has roughly $100 million in annualized revenue.

Note: Because Bill.com Holdings, Inc., the parent company of Divvy, is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Bill.com’s publicly released financial reports, including annual reports, through Bill.com’s investor section on their website.

What is the Divvy business and revenue model?

Divvy makes money through a few revenue models that they combine within their company, they are:

  • Fee for service (FFS) business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model

Divvy subsidiaries, acquisitions, and exits

To date, Divvy has not made any acquisitions, investments, or exits.