Companies
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Divvy Homes
Fintech
Divvy Homes was a rent-to-own real estate startup that let renters work toward homeownership over several years, before being acquired in early 2025 by Brookfield Properties' Maymont Homes unit for about $1 billion, well below its earlier valuation.
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Divvy Homes was founded in 2016 by Adena Hefets, Nicholas Clark, and Brian Ma, building a rent-to-own model intended to give renters, particularly those with steady income but insufficient savings or credit history for a traditional mortgage down payment, a structured path toward homeownership: Divvy would purchase a home of the customer's choosing, rent it back to them, set aside a portion of each monthly payment toward a future down payment, and give the customer a window, typically around three years, to purchase the home outright at a predetermined price. This model attracted substantial venture investment during a period of intense interest in "proptech" startups reimagining various parts of the traditional home buying and renting process, and Divvy grew to manage a portfolio of roughly 7,000 homes across around 20 U.S. cities at its peak, reaching a valuation of approximately $2.3 billion in a 2021 funding round led by Tiger Global Management. The company's business model proved highly sensitive to rising interest rates starting in 2022, which increased Divvy's own financing costs for acquiring homes, and the company also faced sustained criticism, including investigative reporting in 2022 alleging that Divvy was slow to address requested home repairs, charged higher rents than comparable landlords, and evicted tenants at elevated rates relative to typical single-family rental operators, undercutting the company's branding as a more consumer-friendly alternative to the rent-to-own industry's historically predatory reputation. Divvy conducted three rounds of layoffs during 2023 as its growth and financial position deteriorated, and despite launching a new subscription-based "homeownership readiness" product called DivvyUp in early 2024 in an attempt to pivot the business, the company was ultimately acquired by Maymont Homes, a single-family rental division of Brookfield Properties, in a deal announced in January 2025 for approximately $1 billion, roughly half its 2021 valuation, in what several outlets characterized as effectively a distressed sale, with Maymont taking over Divvy's property portfolio and absorbing its technology platform.
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