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'A bloodbath for investors and employee equity': Rent-to-own startup Divvy Homes is being acquired Industry insider tells @ResidentialClub: “everyone has been laid off minus a small team who works on dispositions... [it’s] a bloodbath for investors and employee equity"… https://t.co/sDY1ED6u6O
Valued at $2 billion in 2021 Series D funding round, rent-to-own company Divvy Homes had endured several rounds of layoffs before launching a subscription-based credit building service last year. https://t.co/RvwiN6c61D
Totally missed this. Looks like the new owners of divvy homes (Brookfield LPs in their CRE allocation) will be paying fees to acquire the homes they already own from themselves (same LPs allocation to a16z) at a loss less mgmt fees and keep paying fees https://t.co/GitCnZrv7O
Rent-to-own startup Divvy Homes is being acquired by Maymont Homes in a transaction characterized as a 'fire sale.' The company, which was valued at $2 billion during its Series D funding round in 2021, had previously raised $400 million in venture capital from notable investors including Andreessen Horowitz and Tiger Global. However, Divvy has faced challenges, including multiple rounds of layoffs and a shift towards a subscription-based credit building service. Reports indicate that the acquisition is a difficult situation for investors and employee equity, with most employees laid off except for a small team focused on asset dispositions.
