Mortgagetech has historically been one of the last sectors of fintech to see innovation. However, with digitization en vogue because of COVID-19, there has been an uptick in interest in companies looking to make closing on a home mortgage easier.
As evidence, U.S.-based Blend is gaining attention today for a fresh round of funding and a new valuation. The company landed $75 million in Series F funding, bringing its total raised to $365 million and increasing its valuation to almost $1.7 billion.
The round was led by Canapi Ventures. Existing investors Temasek, General Atlantic, 8VC, Greylock, and Emergence also participated.
“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.”
Blend, a banking-as-a-service company that aims to create a “less stressful, more accessible lending experience,” will use the funds to expand its products and broaden its strategy. Specifically, Blend will likely bolster the consumer banking and auto loans offerings it launched late last year.
“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.”
Among Blend’s new launches this year are a digital closing solution for mortgages and home equity loans, a mobile app for loan officers, and new reporting tools for lenders. Since the start of 2020, Blend has brought on 130+ new employees and helped its bank clients process more than $771 billion in consumer loans– over $3.5 billion each day.