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Blend Raises $300 Million for Mortgage and Consumer Banking Services

Blend Raises $300 Million for Mortgage and Consumer Banking Services

Shortly after expanding its offerings to include consumer banking tools, fintech innovator Blend announced it has landed $300 million in new funding.

The series G financing round was led by Coatue and Tiger Global, and brings Blend’s total funding to $665 million. With the investment, Blend is also seeing its valuation nearly double to $3.3 billion, up from $1.7 billion just five months earlier.

In a blog post, company CEO Nima Ghamsari said that Blend will use the funds to fuel “aggressive plans” for this year. “We want to build the banking software infrastructure for the future,” said the CEO, “with an end-to-end digital experience for any consumer banking product and a complete homebuying and financing journey from start to close.”

Blend offers banks no-code, drag-and-drop workflows to help them customize the end user experience and launch new products quickly in response to consumer demand.

The company launched in 2012 with a focus on helping banks revamp the mortgage application process for consumers. Last September, Blend introduced a consumer banking suite, a set of tools to help banks focus on more than just the lending process. The suite includes modules to help banks launch their own deposit accounts, credit cards, personal loans, vehicle loans, and home equity line of credit offerings.

Last year, Blend facilitated $1.4 trillion in loans, more than double what it did in 2019. The company counts 285+ lender partners, which together are responsible for around 30% of all mortgage volume in the U.S. Partners include BMO Harris Bank, Navy Federal Credit Union, and Wells Fargo, which sees more than 75% of its mortgage applications submitted via its Blend-powered application tool.

In addition to growing its loan volume and client portfolio, Blend also grew its team. The company added more than 200 employees last year remotely via Zoom, a move that increased its team by more than 60%.

“Today’s news is just another step in Blend’s journey; we’re in it for the long haul, and we look forward to continuing to build the best lending and banking experiences for all,” said Ghamsari.

Photo by Jack Ward on Unsplash