Credit card company Petal raises $126m in debt

Credit card company Petal has received a $126m debt facility to help it extend the reach if its services.

Silicon Valley Bank supplied $100m to the FinTech, with the remaining $26.6m coming from Trinity Capital.

This is the first capital Petal has raised from Silicon Valley Bank and Trinity Capital, and adds to the $300m facility it has received from global investment bank Jefferies.

Petal has raised a total of $440m in debt and $100m in equity since it was founded.

The FinTech offers two credit cards. Its first product is aimed at those with an existing credit history and want to improve their credit responsibility and affordability.

Petal’s other card is aimed at those without credit history and are looking to build one through a no-fee card.

Its credit cards are issued by WebBank, Member FDIC. The FinTech claims that over 100,000 people have been approved for its credit cards, with around 70% of these having thin credit history or no credit history when applying.

Petal vice-president of capital markets Nate Huebscher said, “We are excited to expand our relationships with both SVB and Trinity through a truly innovative capital solution that will bolster Petal’s balance sheet and enable us to pursue our ambitious goals for 2021 and beyond.

“The closing of the transaction, structured during the height of COVID, represents a critical milestone for Petal in our efforts to expand credit access.”

The FinTech closed its Series C round in August 2020, raking in $55m from a batch of investors, including Valar Ventures, Rosecliff Ventures, Afore Capital, RiverPark Ventures and Great Oaks Venture Capital.

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