Credit card startup Petal has received $300m in debt capital from global investment bank Jefferies, adding to a previous $30m facility last year.
With these increased funds, the company will look to further the expansion of its card program.
Petal was created to help individuals build credit through a no-fee credit card with cash back, high-limits and low rates which people can qualify for without a credit history.
The company analyses thousands of objective financial data points which are not normally considered during credit approval processes. This includes aspects like how much an individual makes, saves and spends over time, and the bills they pay each month.
Alongside the credit card, the company provides a mobile app which helps simplify money management, spending tracking, and building credit.
The company has seen significant growth since it launched its credit card last year, it claims. Over 65% of its 50,000 customers are millennial and gen Z consumers.
Petal chief financial officer and co-founder Andrew Endicott said, “Our expanded facility with Jefferies provides an excellent foundation for serving our current and future customers for many quarters to come. 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.”
The FinTech has raised over $46m in equity financing, following contributions from firms including Valar Ventures, Greyhound Capital, Third Prime Capital, Rosecliff Ventures, Story Ventures, RiverPark Ventures and Afore Capital.
Copyright © 2019 FinTech Global
