- Petal — a credit card company that helps people financially succeed — announced it closed an uncommitted facility to borrow up to $300 million in debt capital
Petal, a credit card company that helps people financially succeed, recently announced it has closed an uncommitted facility to borrow up to $300 million in debt capital from global investment bank Jefferies. And Petal entered into a similar facility to borrow up to $30 million in debt capital from Jefferies last year. The expanded debt facility gives Petal the ability to continue to expand the fast-growing Petal card program.
Since launching the Petal credit card last fall, Petal saw exponential growth in signups. And the demand for the Petal card has been particularly strong among younger consumers as more than 65% of Petal’s 50,000 customers fall within the millennial and Gen Z generations.
“Our expanded facility with Jefferies provides an excellent foundation for serving our current and future customers for many quarters to come,” said Andrew Endicott, the Petal chief financial officer and co-founder. “It’s a massive vote of confidence in Petal’s mission to create a fundamentally better credit product experience that better serves the needs of modern customers.”
Petal was built to help people build credit (not debt) by providing access to a no-fee credit card with cashback, high limits, and low rates that people can qualify for even if they’ve never used credit before.
And the Petal card program does this by using novel and proprietary underwriting technology that analyzes thousands of objective financial data points that are not typically considered in a credit approval decision such as how much an individual makes, saves and spends over time, and the bills they pay each month.
Plus Petal has a simple user interface and mobile app thus making it effortless to manage your money, track your spending, and build credit without thinking much about it.
“We are pleased to once again support Petal in its mission to help people succeed financially by offering its customers access to the credit they deserve,” added Michael Wade, the head of U.S. ABS capital markets at Jefferies.
So far, Petal raised more than $46 million in equity financing from venture capitalists, financial institutions, and investment banks such as Valar Ventures, Greyhound Capital, Third Prime Capital, Rosecliff Ventures, Story Ventures, RiverPark Ventures, and Afore Capital in addition to its debt facilities with Jefferies and Silicon Valley Bank.
