- Divvy Homes, a rent-to-own startup, raised a $110 million Series C equity round.
- The round was led by hedge fund titan Tiger Global Management.
- CEO Adena Hefets said demand for single-family properties has led more buyers to seek alternative paths to homeownership.
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Rent-to-own startup Divvy Homes announced that it has raised a $110 million Series C equity round.
The round was led by hedge fund-turned-venture-capital-investment firm Tiger Global Management, with participation from GGV Capital, Moore Specialty Credit, JAWS Ventures, and existing investors. When added to significant prior fundraising, (including from Lennar, one of the largest homebuilders in the country), it brings total equity and debt funds raised to more than $500 million.
Divvy Homes purchases homes on behalf of their customers, who then rent them back from Divvy for three years. During that period of time, one-quarter of their monthly rents goes towards an equity stake in the home. After three years, renters can choose to purchase the homes outright from the company — at a predetermined price and with down payments reduced by a portion of the rent paid — or they can move out and get back the equity they put