Blend, the digital mortgage startup platform, has raised $75 million in new funding during its Series F funding round. Fintech Canapi Ventures led the round spearheaded by managing partner Gene Ludwig, Founder of Promontory Financial Group and a former U.S. regulator. Blend’s existing investors, including Greylock, General Atlantic, and Temasek, also participated in the funding round.
The coronavirus pandemic has propelled a higher demand for mortgage applications. Americans have increasingly adopted digital banking trends and e-commerce, and Blend’s software has accommodated those needs.
Jeffrey Reitman of Canapi Ventures said, “We’re seeing banks accelerate their move to digital from what was three to five years to months now. What really drove us to investing now was just looking at all their expansion opportunities. We just think they’ve wedged themselves into the market in a great place.”
The latest funding round gives Blend a valuation of nearly $1.7 billion, a 70-plus percent jump from last year’s round.
During March, the mortgage refinancing industry saw applications rise by over 1,000 percent. In the meantime, home purchase applications have increased by at least 100 percent each month since May.
Blend was founded in 2012 to assist in offering more expedient digital mortgage loan applications. The startup has recently started offering automobile loans as well, in addition to homeowners’ insurance and deposit accounts. The company is seeing rapid growth as more consumers seek to avoid paper-laden loan processing.
Blend counts Wells Fargo, Truist, and U.S. Bank, among its more than 250 customers. Thus far, the digital platform has overseen a volume of more than $771 billion in loans in 2020.