Blend Labs Lending Platform Raises $ 360 Million in High-End IPO

(Bloomberg) – Blend Labs Inc., a lending platform for financial companies, raised $ 360 million in a first public offering price at the top of a marketed range.

San Francisco-based Blend sold 20 million Class A shares on Thursday for $ 18 each, according to a statement. The company had marketed $ 20 million between $ 16 and $ 18.

Blend has a market value in quotation of nearly $ 4 billion based on the outstanding shares listed in its documents. Considering employee stock options, the company’s diluted value is closer to $ 5 billion.

Blend co-founder and CEO Nima Ghamsari will retain control of the company by owning 100% of the company’s class B shares, which have 40 votes each to one for class A shares, according to the documents. Funders such as Lightspeed, Formation8, Coatue Management and General Atlantic will have less than 15% of the combined voting rights.

The nine-year-old credit startup has built platforms that 31 of America’s 100 largest financial firms are using for products like mortgages, auto loans, and credit cards by the end of 2020. In total , the company helps businesses process on average more than $ 5 billion in transactions per day. Blend said in January it raised $ 300 million from investors, giving the company a valuation of $ 3.3 billion.

The coronavirus pandemic has accelerated the transition to digitalization in the financial services industry, a good sign for Blend, the company said on the file. Blend reported a 166% increase in transactions on its platform from March 2020 to the end of the year compared to 2019, part of which is due to the willingness of financial companies to digitize certain processes.

Blend posted a net loss of $ 75 million on revenue of $ 96 million in 2020, compared to a loss of $ 81 million on revenue of $ 51 million the year before, according to its documents.

The offering is being led by Goldman Sachs Group Inc., Allen & Co. and Wells Fargo & Co. Shares of Blend are expected to begin trading on the New York Stock Exchange on Friday under the symbol BLND.

© 2021 Bloomberg LP

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