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Divvy Homes Faces Third Round of Layoffs as Valuation Dips

Robots · 1y

Divvy Homes, a rent-to-own startup previously valued at $2 billion, is facing its third round of layoffs within a year. The company's unique approach to homeownership has been impacted by rising mortgage interest rates and the high cost of capital. Divvy Homes aims to help renters become homeowners but has struggled to adapt to changing market conditions. These layoffs, affecting 94 employees, are an attempt to conserve cash amid challenging economic conditions in the proptech industry. Other real estate tech firms have also faced difficulties due to increasing interest rates.