Blend: $300 Million Funding And $3.3 Billion Valuation

By Annie Baker ● January 20, 2021
  • Blend — a leader in digital lending solutions — recently announced it raised $300 million in Series G funding led by Coatue and Tiger Global

Blend — a leader in digital lending solutions — recently announced it raised $300 million in Series G funding led by Coatue and Tiger Global, nearly doubling its valuation to $3.3 billion in just 5 months. And the capital will be used to fuel Blend’s next phase of growth and support investment in the products and services that matters the 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. Blend also added over 200 new employees, increasing its headcount by over 60%.

The company added many key customers in 2020, expanding coverage to about 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.

And 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. Plus BMO Harris Bank, City Bank, Credit Union 1, and BCU were among the financial institutions that chose Blend’s new suite of consumer banking products and more than 70 lenders have now selected Blend as their solution for digital closing.

Blend is building a technology platform for supporting all consumer banking needs. And 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. And bringing all these elements together saves both financial institutions and consumers time and money.

KEY QUOTES:

“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

“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.”

— John Curtius, a Partner at Tiger Global Management