Blend Labs, the US-headquartered lending software provider valued at $3.3bn as of January this year, filed for an initial public offering yesterday that will give enterprise software provider Salesforce opportunity to exit.
The company has selected the New York Stock Exchange for the offering and has set a placeholder target of $100m.
Founded in 2012, Blend has developed a cloud software platform which helps financial services providers streamline the digital lending process. It cut its net loss from $81.5m in 2019 to $74.6m in 2020 while almost doubling revenue to $96m.
The company has secured a total of more than $685m as of a $300m series G round co-led by Coatue and Tiger Global Management that closed in January at a $3.3bn valuation.
Greylock, Emergence Capital, 8VC, Lightspeed Venture Partners, Nyca Partners, Founders Fund, Formation 8, Andreessen Horowitz and Peter Thiel supplied Blend’s early funding before Salesforce subsidiary Salesforce Ventures invested an amount likely to be $14m in May 2019.
Blend received $130m in a series E round co-led by Temasek and General Atlantic and backed by 8VC, Founders Fund, Greylock and Lightspeed Venture Partners the following month.
Canapi Ventures led the company’s $75m series F round in August 2020 at a $1.7bn valuation, investing alongside Temasek, General Atlantic, 8VC, Greylock Partners and Emergence Capital Partners.
Nima Ghamsari, founder and head of Blend, owns all of its 54.2 million class B shares, but the shares which will be offered in the IPO are the same class A shares held by the company’s investors.
Lightspeed Venture Partners has 13.3% of about 580 million existing class A shares, while Formation 8 has 8.4%, Temasek 6.2%, Coatue and Tiger Global 5.8% each, General Atlantic 5.4% and Greylock 5.2%.
The underwriters for the offering are Goldman Sachs, Allen & Company, Wells Fargo Securities, KeyBanc Capital Markets, Truist Securities, UBS Securities, Piper Sandler, William Blair and Canaccord Genuity.
