US-based lending software provider Blend Labs floated on Friday in a $360m initial public offering representing an exit on the New York Stock Exchange for enterprise software producer Salesforce.
The company priced 20 million class A shares at the upper end of the IPO’s $16 to $18 range. They opened at $20.00 on Friday and closed at $20.90.
Blend has developed a cloud software platform which helps financial services providers streamline the loans process. Its net loss rose from $22.9m in the first three months of 2020 to $27.1m in the equivalent period this year, while revenue more than doubled to $31.9m.
The company had raised at least $685m prior to the offering, Salesforce having provided an undisclosed amount likely to have been $14m through its Salesforce Ventures unit in May 2019.
Temasek and General Atlantic co-led Blend’s $130m series E round the following month, investing alongside 8VC, Founders Fund, Greylock and Lightspeed Venture Partners.
Canapi Ventures, Temasek, General Atlantic, 8VC, Greylock Partners and Emergence Capital Partners subsequently provided $75m in series F funding for the company in August 2020, valuing it at $1.7bn.
Coatue Management and Tiger Global Management co-led a $300m series G round for Blend in January this year. Its pre-2019 funding came from Greylock, Emergence Capital, 8VC, Lightspeed Venture Partners, Founders Fund, Formation 8, Nyca Partners, Andreessen Horowitz and Peter Thiel.
Blend’s executives own the entirety of nearly 18.1 million class B shares and 8.9% of approximately 195 million class A shares.
The company’s largest class A shareholders include Lightspeed Venture Partners, which owns 12.1% of them post-offering, Formation 8 (7.6%), Temasek (5.6%), Coatue and Tiger Global (5.3% each), General Atlantic (4.8%) and Greylock (4.7%).
Goldman Sachs, Allen & Company and Wells Fargo Securities are lead book-running managers for the IPO while KeyBanc Capital Markets, Truist Securities and UBS Investment Bank are book-running managers and Piper Sandler, William Blair, Canaccord Genuity, Drexel Hamilton, Loop Capital Markets and Ramirez co-managers.
The underwriters have a 30-day option to purchase another 3 million shares, which could boost the size of the offering to $420m.
