Blend raises $300 million
Digital lending solutions provider Blend Labs announced it closed $300 million in Series G funding led by Coatue and Tiger Global, nearly doubling its valuation to $3.3B in just five months. This news comes on the heels of a record year as Blend’s technology facilitated $1.4 trillion in mortgages and consumer loans in 2020 and the company added more than 200 new employees, increasing its headcount by over 60%.
Founded in 2012, Blend’s main product is a white-label lending software that enables banks to offer their customers a digital mortgage experience. The company has expanded its product line to include consumer banking products such as deposit accounts, credit cards, personal loans, and vehicle loans.
In 2018, the company entered the insurance space by forming an agency that’s licensed to sell property and casualty insurance products and according to LinkedIn, the company has around 20 people in its insurance unit.
The company added many customers in 2020, expanding coverage to approximately 30% of all US mortgage volume with the addition of South State Bank, TCF National Bank, FirstBank, Evergreen Home Loans, and Idaho Central Credit Union. Wells Fargo, the largest bank retail mortgage originator in the US, was one of Blend’s first partners and today approximately 75% of its mortgage originations come in through the digital application powered by Blend. In addition, BMO Harris Bank, City Bank, Credit Union 1, and BCU were among the financial institutions that selected Blend’s new suite of consumer banking products, and more than 70 lenders have now selected Blend as their solution for digital closing.
The capital will be used to fuel Blend’s next phase of growth and support investment in the products and services “that matter most” to financial institutions as the company aims to power the future of consumer banking.
“2020 was a big year of change for the banking industry. Stay at home orders and social distancing mandates accelerated digital adoption faster than anyone could have expected. Blend has been at the forefront of this revolution, helping banks rapidly meet the changing needs of their customers.” – Coatue Managing Partner Kris Fredrickson.
“Today’s consumers expect Amazon-like experiences across the board, and Blend is well-positioned to help financial institutions achieve that. The company’s momentum is a reflection of their rapid pace of innovation and deep commitment to helping their customers bring the simplicity and transparency consumers crave to the banking industry.” – ohn Curtius, a Partner at Tiger Global Management.
“We’re working to build a smarter future for banking that delivers an end-to-end digital experience for any consumer banking product and an optimal homebuying journey from start to close. No consumer dreams about applying for a home equity line of credit or a mortgage – they’re looking to create a dream kitchen or purchase their first home. We are helping our lenders be there as trusted advisors for their customers at every one of life’s milestones.” – Nima Ghamsari, founder and CEO of Blend.