New York-based fintech Petal has secured a $200m debt facility
Petal, a New York-based fintech company, has recently announced that it has secured a $200m debt facility from Victory Park Capital and a new term loan facility for up to $20m with Trinity Capital. This funding builds on a previous $35m raise led by Peter Thiel’s Valar Ventures in May. The company intends to use this funding to expand its credit card program, which aims to help consumers who are new to credit to build it with the data in their personal banking history.
Expanding Credit Card Program
Petal’s credit card program is designed to make credit accessible to millions of people who have been overlooked and underserved for too long. With this program, any US consumer can use their banking history to qualify for new and better financial services. So far, around 400,000 consumers have been approved for Petal credit cards. The credit cards come in three different options, ranging from free to $59 a year, and offer varying cashback rewards and credit limits.
Using Bank Data to Determine Credit Worthiness
One of the key features of Petal’s credit card program is its use of bank data to determine a consumer’s credit worthiness. Traditionally, consumers are evaluated based on their credit score alone, which can often result in rejections for those who are new to credit. However, Petal’s program leverages bank data to provide a more accurate assessment of a consumer’s creditworthiness, allowing more people to qualify for credit cards. In 2022 alone, over 100,000 new cards were approved using this innovative approach.
Partnerships for Success
The recent funding round reflects the strong support for Petal’s mission to make responsible and modern financial services available to everyone. Victory Park Capital partner Jason Brown expressed the company’s commitment to partnering with Petal as they work towards expanding their credit card program and serving even more underserved consumers. With the backing of these prominent investors, Petal is well-positioned to continue its growth and make a significant impact in the financial services industry.
