SAN FRANCISCO, Aug. 12, 2020 /PRNewswire/ -- Blend, a leader in digital lending solutions, announced it has secured $75 million in Series F funding led by Canapi Ventures, a fintech-focused venture capital firm backed by major banks and financial institutions. This capital brings Blend's valuation to nearly $1.7 billion and will be used to accelerate the development of its unified digital platform for mortgages, consumer loans, and deposit accounts. Existing investors Temasek, General Atlantic, 8VC, Greylock, and Emergence also participated in the round.
"Financial institutions have traditionally taken time to modernize legacy systems, but digital is now table stakes. Shelter in place and social distancing mandates have forced banks and other lenders to accelerate digital transformation plans from years to months," said Jeffrey Reitman, a partner at Canapi Ventures. "Blend is at the forefront of this innovation, offering flexible digital solutions to help lenders like Wells Fargo, U.S. Bank, Truist, M&T Bank, and other key regional banking institutions meet their accelerated timelines and their customers' changing needs."
COVID-19 has significantly impacted the lending industry -- generating a huge surge in mortgage refinance applications in response to record-low interest rates, shifting nearly all consumer engagement to digital channels, and driving a sudden wave of demand for Paycheck Protection Program small business loans. Even in the new remote work paradigm created by the pandemic, Blend helps financial institutions respond with greater agility to changing market dynamics with modern lending experiences for consumers and loan teams. The company's Digital Lending Platform streamlines the journey from application to close for any banking product, helping lenders acquire more customers, increase productivity, and deepen customer relationships.
"Our customers are our top priority. This additional capital allows us to accelerate our broader strategy to create long-term value by serving our customers, expanding our offerings, and building out the Blend ecosystem," said Marc Greenberg, head of finance at Blend. "Our goal is to deliver software that gives lenders the flexibility to meet the evolving needs of consumers. We're committed to being the digital layer that enables millions of people to gain access to the capital they need, while helping our customers be there as trusted advisors for every milestone in a consumer's financial journey."
Blend continues to build on its substantial momentum in 2020 with numerous new products, including its digital closing solution for mortgages and home equity loans, an elegant mobile app for loan officers, and new reporting tools for lenders. The company also announced its expansion into consumer banking and a new offering for auto loans in late 2019. Since the beginning of the year, Blend has hired and onboarded more than 130 new employees and helped its growing base of more than 250 lender customers process over $3.5 billion in consumer loans each day, totaling more than $771 billion in loan volume this year to date.
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 250 other leading financial institutions to acquire more customers, increase productivity, and deepen customer relationships. The company enables customers to process more than $3.5 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.
About Canapi Ventures
Canapi Ventures is a venture capital firm investing in early to growth-stage fintech companies. Our partners have been at the forefront of financial services innovation as operators, investors, bankers, advisors, and regulators. Our venture capital model connects high-quality fintech companies to our extensive network of banks and strategic partners. Canapi Ventures is advised by CenterHarbor Advisors and Canapi Advisors, LLC, a wholly owned subsidiary of Live Oak Bancshares, Inc. (Nasdaq: LOB). For more information, visit www.canapi.com.