Fintech Credit Startup Petal Raises $55 Million

By Amit Chowdhry ● September 28, 2020
  • Petal — a credit card company created to help people build credit and spend responsibly — announced recently that it has raised a $55 million Series C round of funding

Petal — a credit card company created to help people build credit and spend responsibly — announced recently that it has raised a $55 million Series C round of funding. This funding round will enable Petal to double down on its mission to help more people access honest, simple, and responsible credit.

This investment round was led by Valar Ventures. Other investors that participated in this round include Rosecliff Ventures, Afore Capital, RiverPark Ventures, Great Oaks Venture Capital, GR Capital, Nelstone Ventures, Abstract Ventures, Ride Ventures, The Gramercy Fund, Adventure Collective, Starta Ventures, and NFL star Kelvin Beachum, Jr. Including this round, Petal has now raised more than $100 million in equity funding.

Petal was established to help people build credit (not debt) by providing access to a high-quality Visa credit card that people can qualify for even if they’ve never used credit before. Rather than relying solely on credit scores, Petal has built proprietary technology that also analyzes banking history—measuring creditworthiness based on income, spending, and savings.

This process — which is referred to as “Cash Scoring” — measures economic fundamentals that aren’t typically considered in a credit approval decision. And this helps more people qualify and enables Petal to make credit accessible on terms tailored to each person’s unique financial situation.

After approved, Petal provides customers with all the tools they need to build credit and thrive financially. And this includes a modern mobile app where members can automate payments, track their credit scores, manage subscriptions, and stay on top of their spending.

KEY QUOTES:

“Traditional credit scores have become less reliable in the COVID economy, forcing mainstream banks to significantly scale back access to credit at a time when many people need it most. Cash flow scoring allows Petal to continue making credit available even in these volatile economic conditions.”

— Jason Gross, Petal’s CEO and co-founder

“We’re pleased to once again invest in Petal. They have created a better and more modern credit experience, and a game-changing technology platform that’s well-matched to these times. We’re happy to support them as they scale.”

— James Fitzgerald, a founding partner with Valar Ventures