Overview

Divvy Homes provides a rent-to-own model that helps individuals and families achieve homeownership. The company purchases homes chosen by clients and rents them out, allowing clients to live in the home while saving for a down payment. A portion of the monthly rent contributes to this savings goal. Clients begin by applying for approval, after which they can select a home from Divvy's listings. Divvy manages major repairs, while tenants handle routine maintenance. When clients are ready to buy, they can use their accumulated savings for the down payment and closing costs. If they choose not to purchase, they can walk away with their savings, minus a fee. Divvy Homes stands out by offering a flexible and structured approach to homeownership for those who may not qualify for traditional mortgages.

Simplify's Take

What believers are saying

• Growing interest in rent-to-own models among millennials facing housing affordability challenges.
• Acquisition by Brookfield Properties could provide additional resources and market expansion.
• DivvyUp program aligns with demand for educational resources in homeownership readiness.

What critics are saying

• Financial instability evidenced by acquisition in a 'fire sale' by Brookfield Properties.
• Multiple rounds of layoffs, including 95 employees in October 2023, may affect operations.
• High financial leverage due to over $1 billion in debt financing poses repayment challenges.

What makes Divvy Homes unique

• Divvy Homes offers a unique rent-to-own model for aspiring homeowners.
• The platform allows clients to select any home on the market for purchase.
• DivvyUp program prepares clients for mortgage readiness, enhancing their homeownership journey.

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Funding

Total Funding

$1245M

Above

Industry Average

Funded Over

6 Rounds

Notable Investors:

Tiger GlobalAndreessen Horowitz

Notable Investors:

Tiger GlobalAndreessen Horowitz

$735,000,000

Debt

Oct 2021

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Debt Funding Comparison

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