Blend Closes $300M in Funding, Nearly Doubling Valuation to $3.3B in Just Five Months
Led by Coatue and Tiger Global, Investment Will Accelerate Development of the Company's Digital Platform for the Future of Consumer Banking
SAN FRANCISCO, Jan. 13, 2021 /PRNewswire/ -- Blend, a leader in digital lending solutions, 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. 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. 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%.
"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."
The company added many key customers in 2020, expanding coverage to approximately 30% of all U.S. 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 U.S., 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.
"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."
Blend is building a technology platform to support all consumer banking needs. Key elements of this include a unified configurable platform for mortgages, consumer loans, and deposit accounts as well as an end-to-end digital mortgage solution where consumers can complete the full home finance process, including insurance and closing, in a single place. Bringing all these elements together saves both financial institutions and consumers time and money.
"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," 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."
About Blend
Blend helps lenders streamline the customer journey for any banking product from application to close. Its Digital Lending Platform is used by Wells Fargo, U.S. Bank, and over 285 other leading financial institutions to acquire more customers, increase productivity, and deepen customer relationships. The company enables customers to process more than $4 billion in mortgages and consumer loans per day, helping millions of consumers get into homes and gain access to the capital they need to lead better lives. To learn more, visit blend.com.
SOURCE Blend
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