Petal, a credit card company helping people to build credit, has closed its Series C on $55m so it can help more people in these tough times.
The FinTech claims this equity injection will enable it to “double down on its mission” of supplying people with honest, simple and responsible credit. With the coronavirus putting a strain on people’s finances and access to financing, Petal believes its mission has never been more important, particularly for those with bad or no credit history.
Valar Ventures served as the lead investor, with other participating investors including 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.
The FinTech helps people to build credit through a Visa credit card that anyone can use, regardless of having used credit before. Instead of using credit scores, the company assesses banking history to measure credit worthiness, based on income, spending and savings.
Once approved, users can build their credit scores and through the app they can also automate payments, track their rating, manage subscriptions and monitor spending.
Petal CEO and co-founder Jason Gross said, “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.”
With the close of the round, the FinTech has secured over $100m in funding. The company has also previously secured a $300m debt facility from Jefferies.
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