Fintech Startup Blend launched its Initial Public Offering (IPO) on the New York Stock Exchange after offering 20 million shares starting at $18 per share.
The startup was founded with the promise of facilitating the gathering of documentation for loan applications, facilitating the process, and speeding approval.
Since last year, the startup has helped to process more than $1.4 trillion in mortgages, as well as expanding its services to credit card and auto loan services.
Nima Ghamsari, Blend’s Founder, started making money by working part-time at McDonald’s and Starbucks, before starting selling “Magic: The Gathering” cards.
Fintech was a big part of its new economic activity, which prompted him to move to that industry and launch his own startup.
In 2012, the company was founded, and over the next 9 years would raise over $665 million in several funding rounds. The last one, a Series G round, raised a total of $300 million from investors like Tiger Global Management and Coatue.
Fintech startups have been one of the most successful models, with many reaching unicorn status and considering launching their own IPOs.
Donna Parisi, Global Head of Financial Services And Fintech at Shearman & Sterling, referred to this trend by saying,
“Successful tech IPOs have prompted a number of mature fintech unicorns in 2021 to consider going public. Wall Street’s appetite for top-flight fintech is only going to get stronger.”
On Friday afternoon, Blend stocks closed at $20.9, which is 16% higher than the original value of the share. The IPO raised a total of $360 million and was led by financial behemoths Goldman Sachs, Allen & Co., and Wells Fargo.
After the fintech startup debuted on the NYSE, the total valuation of the company is almost $4 billion. This success is the result of the 166% increase in transactions reported by blend since March of 2020.