DRAPER — Business financial technology innovator Divvy has continued its stellar growth arc even amid pandemic conditions and on Tuesday announced a fresh $165 million in funding along with a valuation that’s vaulted the company into a rarefied realm.

The Series D round includes new investments from Hanaco Ventures, PayPal Ventures, Schonfeld Strategic Advisers and Whale Rock Capital Management along with participation from previous investors Acrew Capital, Insight Venture Partners, NEA and Pelion Venture Partners.

Divvy launched in 2016 as an expense management tool but has since evolved into a multifunction platform that includes invoicing automation and smart corporate credit cards to help businesses oversee the spending side of their operations. Also, the company’s software is free. Divvy earns its money on the banking side of its transactional system.

Along with Tuesday’s funding announcement, the company released its first valuation. The $1.6 billion figure puts Divvy easily past the $1 billion mark that’s become the delineator for privately held “unicorn” tech companies.

Divvy CEO Blake Murray said while the company boasts some heavy-hitting tech interests among its list of clients — now numbering over 10,000 — the platform works for businesses in any sector and of any size.

“The best in every vertical choose Divvy,” Murray said in a statement. “We’re not just building for tech startups — we help businesses across the country by providing the capital and financial software they need to thrive. We’re fortunate to be able to build for companies of all sizes and we’re grateful to everyone who has helped us get here.”

Divvy said it’s seen stellar growth even amid the tough economic conditions wrought by restrictions and impacts of the COVID-19 pandemic. The company reports a 500% increase in monthly sign-ups since March 2020.

Divvy said the new funding, which brings the company’s total raise to date north of $400 million, will help fuel product development and engineering efforts to accelerate “future road maps.”

Those future pathways could include some interesting collaborations with new investor PayPal, which counts over 300 million account holders worldwide. PayPal helped invent the world of online payments back in the late ’90s and brings a wealth of experience to team Divvy.

Peter Sanborn, PayPal vice president in charge of corporate development as well as PayPal Ventures managing partner, said his company and Divvy have a shared business DNA focused on making business management easier and more efficient.

“With its compelling free software, Divvy is poised to become a key part of the financial nervous system for businesses,” Sanborn said in a statement. “PayPal and Divvy share a goal of simplifying all that goes into running a business, which creates more time to focus on customers. We’re thrilled to support Divvy’s continued expansion.”