Divvy Homes, a rent-to-own real estate startup, announced its acquisition by Maymont Homes, a division of Brookfield Properties, for approximately $1 billion. The transaction, which reflects a lower valuation compared to its $2.3 billion peak in 2021, is anticipated to close in mid-February.
Divvy’s business model focused on assisting renters in transitioning to homeownership. The company would purchase homes on behalf of renters, allowing them to lease the property while saving to purchase it within three years.
Challenges emerged in 2022 as rising mortgage interest rates pressured the business, prompting three rounds of layoffs in a single year.
Founded in 2016, Divvy raised over $700 million in debt and equity from investors such as Tiger Global Management, GGV Capital, and Andreessen Horowitz. Its most recent funding was a $200 million Series D round in August 2021, led by Tiger Global and Caffeinated Capital, following a $110 million Series C earlier that year.
Maymont Homes operates across more than 40 U.S. markets and is integrating Divvy into its portfolio. To date, Divvy Homes reports having facilitated homeownership for 2,000 customers.
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By Proptechbuzz
By Ravi Kumar
