Blend, a Silicon Valley-based startup that specializes in digital lending, reported a net loss of $769 million in 2020, but is quickly taking measures to reduce its costs and remains on the path of profitability. The company focuses on making the lending process easier and faster for borrowers, utilizing tech-driven solutions to reimagine the customer experience.

To reduce costs, Blend is implementing a wide range of measures, such as cutting overhead expenses and streamlining operations. For example, the company recently announced that it will be consolidating some of its existing offices and shutting down its operations in two states. It also had to let go of some of its employees in order to realign personnel resources with its reduced customer base.

According to Blend, it has also had to reduce its workforce to better align with the customer base. The company is now looking for ways to further improve its financial efficiency, such as diversifying its client base, revising costly software agreements and reducing dependency on third-party vendor solutions. Furthermore, it is also focusing on product development and customer acquisition efforts so as to create sustainable revenue streams and increase its customer base.

Despite the reported losses, Blend believes that it is still a well-positioned leader in the digital lending space. With a focus on cost-reduction and efficiency, the company thinks that it can move closer to profitability through product innovation, creating a stronger financial profile and driving customer acquisition.

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