Blend Labs, known for its cloud banking services, and Haveli Investments, a technology-focused private equity firm, have announced a strategic partnership marked by a significant $150m investment in Blend by Haveli.
This investment comes in the form of convertible preferred stock and underscores a mutual commitment to advancing financial services technology.
The partnership and financial infusion will see Blend using approximately $145m of the proceeds to repay existing debts under its credit agreement, with the remainder allocated for general corporate purposes. This financial restructuring is poised to strengthen Blend’s balance sheet and position the company for long-term growth and value creation.
Blend Labs offers infrastructure to support banking. Its clients, which include large banks, FinTechs and credit unions, an out-of-the-box solution for mortgages and consumer banking.
Brian Shet, chief investment officer at Haveli Investments, said, “We are pleased to announce our partnership with Blend, a market leader in both Mortgage and Consumer Banking software for banks, credit unions, and other lending institutions.
“We have known the Blend team for several years and have been impressed with their innovation and vision. With a blue-chip customer base and an improved balance sheet, we believe Blend is well positioned to succeed with its modern, next-gen platform. We’re excited to start this partnership, and we believe that we can work together with Blend to increase long-term value for all shareholders, customers, employees, and other key stakeholders.”
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