Travel management company new entrant TripActions is teaming up with Divvy, which automates expense reports, tracks budgets in real time, aligns with accounting software providers like Quickbooks and supplies pre-budgeted payment cards, both virtual and plastic. The details of the venture aren't clear at the moment, but the partnership will "help companies spend smarter while saving money and time through simplifying business travel and expense-associated work trips," said TripActions CEO Ariel Cohen.
The Divvy deal follows an active few months for TripActions. Most notably, the company achieved the coveted "unicorn" status in November—when it landed a $154 million Series C investment—to reach a valuation of more than $1 billion. TripActions said it would use the funding to enhance its artificial intelligence-based booking platform and scale up support services to serve the larger corporate clients it's starting to target. In July, the Palo Alto, Calif., company opened its first non-U.S. offices, in London and Amsterdam.
Utah-based Divvy also is growing fast, racking up more than $52 million in funding since its 2016 founding and landing more than 450 clients including Wordpress and Evernote. The company offers a financial management dashboard that enables corporate clients to set budgets and monitor employee spending in real time. The platform features Mastercard-branded payment cards that can be used like corporate credit cards, as well as virtual cards for one-time use. Rather than charging a fee to corporate users, Divvy earns revenue from the interchange fee on card purchases.