Petal raises $140 million
Petal, the credit card company on a mission to help people build credit and spend responsibly, has secured $140 million in Series D funding. The round was led by Tarsadia Investments, with participation from Valar Ventures, CUNA Mutual, Encore Bank, Volery Capital Partners, Gopher Asset Management, RiverPark Ventures, Afore Capital, Gaingels, and a number of other new and existing investors.
Founded in 2016, Petal offers access to “high-quality Visa credit cards” issued by WebBank. People can qualify for Petal cards even if they’ve never used credit before and instead of relying solely on credit scores, Petal built a technology that also analyzes banking history – measuring creditworthiness based on income, spending, and savings.
Over the past year, Petal “tripled its user base and more than quadrupled its monthly revenue.” Today, there are nearly 300,000 approved Petal credit cards, and the company has been adding 10,000 to 20,000 new members per month.
Petal also has an enterprise offering – last year it announced the launch of Prism Data – “a next-generation data intelligence platform that translates raw transaction data into actionable insights and scores.” The platform is available for other financial services companies.
“The traditional credit system is broken and consumers are in desperate need of more modern and accessible financial products. In addition to exponential user growth, Petal has proven the power of its tech as evidenced by stellar credit performance and the rapid scaling of Prism. We are excited to double down on Jason and the team as they pioneer a new way to accelerate financial inclusion.” – Rishi Reddy, head of venture and growth investing at Tarsadia.