After a tumultuous few years for companies operating in the real estate market, Davy Homes announced Wednesday that it will be acquired by a division of Brookfield Properties for approximately $1 billion.
While this result is not a fire sale as previously described in other reports, it is lower than Divvy's last public valuation of $2.3 billion in 2021. The transaction is expected to close in mid-February.
Divvy operated a model in which it worked with renters who wanted to become homeowners, buying the home of their choice and renting it for three years, during which time they would “save up enough to own their own home.” . .
The company ran into some problems in 2022 when mortgage rates started to rise sharply, and made three job cuts at known stages over the course of a year.
Founded in 2016, the once-hot startup has raised over $700 million in debt and equity from notable investors including Tiger Global Management, GGV Capital, and Andreessen Horowitz (a16z). Ta. Divvy's last known funding occurred in August 2021. It was led by Tiger Global Management and Caffeinated Capital with $200 million in Series D funding at a $2 billion valuation. The Series D round was announced just six months after the $110 million Series C.
Maymont Homes, the Brookfield division that is acquiring Divvy, operates in more than 40 markets across the United States. “To date, we have created 2,000 homeowners,” Divvy said in a written statement.
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