Capital will be used to boost growth and support product investments
Blend, which has seen stellar growth over the past 12 months, has nearly doubled its value after raising $300 million in its Series G funding round.
Led by Coatue Management and Tiger Global, the financing round brings Blend’s valuation to $3.3 billion. The cash infusion will be used to fuel the company’s “next phase of growth and support investment in the products and services that matter most to financial institutions,” according to its press release.
“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 home buying journey from start to close,” said Nima Ghamsari, founder and CEO of Blend. “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.”
2020 was a banner year for Blend. Not only did its digital platform originated $1.4 trillion in consumer and home loans, the firm also added more than 200 new employees – increasing its headcount by more than 60%.
Blend provides mortgage and other consumer-lending software to financial institutions. The company said that it is working to develop a technology platform that supports all consumer banking needs – one that includes a unified configurable platform for mortgages, consumer loans, and deposit accounts as well as an end-to-end digital mortgage solution.
“Today’s consumers expect Amazon-like experiences across the board, and Blend is well-positioned to help financial institutions achieve that,” said John Curtius, a partner at Tiger Global Management. “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.”
Last year, the company expanded 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 to its client portfolio.
“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,” said Coatue Managing Partner Kris Fredrickson. “Blend has been at the forefront of this revolution, helping banks rapidly meet the changing needs of their customers.”
