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Rent-to-own startup Divvy Homes selling to Brookfield for about $1 billion
After a tumultuous few years for companies operating in the real estate market, Divvy Homes has announced that it is being acquired by Maymont Homes, a division of Brookfield Properties, for approximately $1 billion. This comes as a surprise after previously reported rumors suggesting a fire sale.
Divvy operated a rent-to-own model where it would buy homes and allow renters to occupy them while building up savings needed to eventually own the property themselves. However, when mortgage interest rates began to surge in 2022, the company encountered difficulties, resulting in three rounds of layoffs within a year’s span.
Founded in 2016, Divvy had garnered over $700 million in debt and equity funding from prominent investors such as Tiger Global Management, GGV Capital, and Andreessen Horowitz. The startup’s most recent funding took place in August 2021, securing a $200 million Series D round led by Tiger Global Management and Caffeinated Capital at a valuation of $2 billion. This was preceded just six months prior by a $110 million Series C raise.
Maymont Homes, the Brookfield unit acquiring Divvy, operates across over 40 markets in the United States.
Source: techcrunch.com
