Divvy Homes Sees 73% Markdown

Divvy Homes, founded in 2017, is a fintech company that aims to simplify the path to homeownership. By offering a lease-to-own model, Divvy enables potential homebuyers to start with renting and incrementally build equity in their homes with each monthly payment. This unique approach provides an alternative to traditional mortgages, making homeownership more accessible to individuals who might struggle with large down payments or meeting stringent lending criteria. It is also a component of the Prime Unicorn Index, the standard bearer for private markets benchmarking. Reflecting the broader private market, the Index is down 6.65% year-to-date. 

Divvy Homes has raised a total of $367.04 million over five rounds. Its most recent raise was a $190 million Series D round priced at $19.13 per preferred share, which valued the company at over $1.5 billion. Investors include Tiger Global, Andreessen Horowitz, Caffeinated Capital, and GGV, among others.

On October 3, 2023, Divvy Homes was marked down 73% in the Prime Unicorn Index due to a decrease in the common share price granted to company executives, as indicated through two consecutive Employee Plan Exemption Notice (EPEN) filings. The first filing, dated June 15, 2022, disclosed a share price of $7.74, compared to $2.09, disclosed in a filing dated September 27, 2023. This drops the company’s valuation to $417 million, meaning that Divvy Homes will likely be removed from the Index next quarter. 

Over the past year, Divvy Homes has made three rounds of layoffs, further showing the difficulty the company is facing.

See how Divvy Homes is performing against the Prime Unicorn Index below.