- Investment Details: Haveli Investments, a technology-focused private equity firm based in Austin, USA, invested $150 million in Blend Labs. The investment was made through the purchase of Blend’s Series A convertible preferred stock, with the option to convert to Class A common stock at an initial conversion price of $3.25 per share.
- Purpose of Investment: The majority of the investment, $145 million, will be used to repay all amounts payable under Blend’s existing credit agreement. The remaining cash will be allocated for general corporate purposes.
- Board Appointment: As part of the investment, Haveli’s chief investment officer, Brian Sheth, has been installed on Blend’s board of directors.
- Blend’s Operations: Blend Labs, founded in 2012, offers a cloud-based platform that digitizes consumer banking workflows, focusing on mortgages, credit cards, deposit accounts, and other lending services. It expanded its offering to include title insurance and settlement services in 2021 through the acquisition of Title365.
- Financial Performance: Blend generated $156.8 million in total revenues last year, with $109.5 million of this coming from the operations of the Blend platform.
- Previous Funding: This investment adds to the $300 million raised during Blend’s Series G funding round led by Coatue and Tiger Global in 2021.
Overall, the investment and partnership with Haveli Investments reflect confidence in Blend’s growth strategy and its mission to transform financial services through digitization.
