Divvy Residences raises $110 million in spherical led by Tiger Worldwide

Divvy Households, a lease-to-possess startup, raised a $110 million Collection C equity round. The spherical

  • Divvy Households, a lease-to-possess startup, raised a $110 million Collection C equity round.
  • The spherical was led by hedge fund titan Tiger World Administration.
  • CEO Adena Hefets claimed desire for one-spouse and children houses has led more consumers to search for choice paths to homeownership.
  • Pay a visit to Company Insider’s homepage for a lot more tales.

Rent-to-possess startup Divvy Properties introduced that it has elevated a $110 million Series C equity round. 

The round was led by hedge fund-turned-undertaking-cash-financial commitment firm Tiger Worldwide Administration, with participation from GGV Money, Moore Specialty Credit rating, JAWS Ventures, and present traders. When extra to substantial prior fundraising, (including from Lennar, just one of the most significant homebuilders in the region), it brings whole equity and debt resources raised to more than $500 million.

Divvy Homes purchases properties on behalf of their shoppers, who then lease them back from Divvy for three a long time. For the duration of that period of time of time, one particular-quarter of their every month rents goes towards an fairness stake in the property. Just after 3 a long time, renters can decide on to purchase the residences outright from the firm — at a predetermined selling price and with down payments decreased by a portion of the hire paid out — or they can go out and get back again the fairness they set into the house.

Lease-to-individual courses can typically support aspiring householders who may perhaps need a lot more time to strengthen their finances, raise their credit history scores, and conserve for a down payment, in accordance to Investopedia.

CEO and cofounder Adena Hefets explained to Insider that the organization, which now operates in 16 marketplaces throughout the US and programs to broaden to 20, is also creating out other solutions. Most recently, it launched a genuine estate brokerage in Atlanta and Dallas staffed by specifically properly trained agents. Divvy is also getting ready to offer you shoppers other economic goods, this sort of as home loans, she added.

“Our target is to be an conclude-to-finish system throughout the board,” Hefets said.

Tiger Worldwide, a $42 billion New York-dependent hedge fund-turned-financial investment firm that focuses on enterprise money,