Divvy Homes, a rent-to-own real estate company, announced its acquisition by Brookfield Properties' Maymont Homes division for approximately $1 billion, less than its $2.3 billion valuation in 2021. Despite creating 2,000 homeowners since its founding in 2016, Divvy struggled with rising mortgage rates in 2022, leading to three rounds of layoffs. The startup had previously raised over $700 million from major investors, including Tiger Global, GGV Capital, and Andreessen Horowitz, with its last funding round in 2021. The acquisition, expected to close in February, reportedly leaves some shareholders without proceeds, as indicated in a letter from CEO Adena Hefets. Maymont Homes operates in over 40 U.S. markets and sees this deal as a strategic expansion of its housing portfolio. Continue here.
