Digital lending platform Blend Labs bags $150m funding from Haveli Investments
Digital lending platform Blend Labs has received a $150 million investment from Haveli Investments, a technology-focused private equity firm based in Austin, USA.
Blend Labs bags $150m from Haveli Investments
The firm’s investment was delivered through a purchase of the platform’s Series A convertible preferred stock – with no fixed dividend payments – with the option to convert to Class A common stock at an initial conversion price of $3.25 per share.
In addition to this, Haveli has also installed its chief investment officer, Brian Sheth, on Blend’s board of directors.
Blend says the majority of the investment – $145 million – will be put towards repaying “all amounts payable” under its existing credit agreement, with the remaining cash set to fund “general corporate purposes”.
For Nima Ghamsari, co-founder and head of Blend, the investment and subsequent partnership with Haveli “reflects confidence in Blend’s continued journey to transform financial services and is an important show of faith in our growth strategy”.
Founded in 2012, the cloud-based platform enables banks, fintech and credit unions to digitise consumer banking workflows with a specific focus on mortgages, credit cards, deposit accounts and other forms of lending.
Its offering was extended to title insurance and settlement services in 2021 when it acquired Title365 for $422 million.
According to its latest financial statement, the company levelled $156.8 million in total revenues last year, with $109.5 million of this being derived from the operations of the Blend platform.
Blend’s new cash injection adds to the $300 million raised during a Series G funding round led by Coatue and Tiger Global in 2021.
