The funding, led by Canapi Ventures, the Washington, D.C. FinTech-focused venture capital firm, brings Blend’s valuation to nearly $1.7 billion. The cash will be used to grow its online mortgage, consumer loan and deposit accounts, the company said. Canapi joined existing investors Temasek, General Atlantic, 8VC, Greylock and Emergence in the round.
“Financial institutions have traditionally taken time to modernize legacy systems, but digital is now table stakes,” said Jeffrey Reitman, a partner at Canapi Ventures, in a statement. “Shelter in place and social distancing mandates have forced banks and other lenders to accelerate digital transformation plans from years to months.”
He said Blend is at the forefront of this innovation, offering digital solutions to lenders including Wells Fargo, U.S. Bank, Trust, M&T Bank, and other regional banking institutions meet their accelerated timelines and their customers’ changing needs.
Blend said it added new products this year including a digital closing solution for mortgages and home equity loans, a mobile app for loan officers and new reporting tools for lenders. Last year, it expanded into consumer banking with auto loans.
Since January, Blend has hired more than 130 employees and grew its base of more than 250 lenders that processed more than $771 billion in total loan volume to date.
“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, in a statement. “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.”
Last month, the Mortgage Bankers Association (MBA) reported mortgage applications surged as June turned into July, in yet another sign of the housing market’s surprisingly strong rebound after the coronavirus-triggered shutdown this spring.
The number of mortgage applications from homebuyers increased one third in the week ending on July 3 compared to the same period a year ago.