Hoping to reinvent the way companies track expense reports, Utah-based Divvy announced today it has raised $7 million in seed funding and has launched its platform to the public.
In addition, Divvy said it has partnered with WEX Bank to bring its service to businesses at no cost.
“Business owners have been burdened by corporate credit card programs for decades, spending their time working in out of date software, chasing down receipts and uploading expense reports instead of focusing on growing their business,” said Blake Murray, founder and CEO of Divvy, in a statement. “We created Divvy to give business owners a proactive way to manage their employees’ spending habits, while reducing the risks of fraud and wasteful spending.”
Murray said the money will be used to continue growing its development team, expand its sales department, and hire for its customer support team. While the money is just a seed round, Murray also hinted that the company won’t necessarily need additional funding after this round.
Divvy is targeting what studies have shown to be the significant amounts companies lose on expenses each year from sloppy record keeping, basic mismanagement, or outright fraud. The service creates a dashboard that allows executives to more closely monitor business and employee spending, particularly via credit cards.
Traditionally, employees might submit expenses periodically or at the end of the month, days or weeks after something has been purchased. Instead, Divvy allows employee groups and departments to track expenses in real time so top-level executives can spot any potential issues such as overspending much faster.
The platform makes it easy to approve regular payments for services or subscriptions, and to cancel them instantly when need be. Divvy also generates reports in case they’re needed for audits down the road.
Murray said Divvy believes the insight gained from that real-time information will lead to big savings for customers.