Blend Labs (NYSE:BLND), a cloud banking platform, has raised $150 million in financing from PE firm Haveli. As part of the deal, Brian Sheth, Haveli’s CIO, will join Blend’s board of directors.
The funding comes in a Series A convertible with a 0% coupon. The conversion price is $3.25 or a 44% premium to the current share price. There are also stock warrants at a $4.50 exercisable price.
The financing was enabled exclusively by boutique investment bank FT Partners.
Blend is expected to use the new money to repay existing borrowings and other payables and is described as strengthening the company’s financial position.
Nima Ghamsari, co-founder of Blend, said Haveli’s funding reflects its confidence in Blend’s goal of transforming financial services.
Sheth added that the financing improves the firm’s balance sheet, and they expect Blend to drive value for all stakeholders, including shareholders.
Blend is a banking-as-a-service provider that offers an end-to-end solution for mortgagees and a suite of consumer banking products. It also offers a low-code environment for faster development and customization. Blend is currently in use at 39 of the top 100 banks in the US and 11 of the top 25 mortgage originators. Consumer banking, a newer product, is being used by 7 of the 30 top depository institutions.
Following the news, shares in Blend have hovered. The company has a market cap of over $620 million.
