Lending solutions provider Blend has picked up a valuation close to $1.7bn on the back of a $75m funding round and is now planning to solve banks’ Covid-19 problems.
Canapi Ventures, the FinTech-focused venture capital firm, led the round and hails Blend for being perfectly placed to solve the pain points suffered by the financial industry because of the pandemic.
The coronavirus has caused a surge in mortgage refinance applications in response to record-low interest rates that has pushed consumers to conduct their business through digital channels.
“Financial institutions have traditionally taken time to modernise legacy systems, but digital is now table stakes,” said Jeffrey Reitman, a partner at Canapi Ventures. “Shelter in place and social distancing mandates have forced banks and other lenders to accelerate digital transformation plans from years to months. 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.”
Existing investors Temasek, General Atlantic, 8VC, Greylock and Emergence also participated in the round.
Blend will use the new cash injection to speed up the development of its unified digital platform for mortgages, consumer loans and deposit accounts.
“Our goal is to deliver software that gives lenders the flexibility to meet the evolving needs of consumers,” said Marc Greenberg, head of finance at Blend. “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 has already released several new products this year, including its digital closing solution for mortgages and home equity loans, a mobile app for loan officers and new reporting tools for lenders.
Blend has hired and onboarded more than 130 new employees since the start of the year and now has more than 250 lender customers on its books.
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