Petal raises $35 million

Credit card and financial technology startup Petal has raised $35 million in new funding led by Valar Ventures, with participation from Story Ventures, Synchrony, Samsung Next, Core Innovation Capital, and RiverPark Ventures, among others.

Petal is also announcing that it has spun off its B2B-focused data infrastructure and analytics subsidiary, Prism Data. This new investment will be split between Petal and Prism Data.

Founded in 2016, the startup has raised nearly $300 million in equity capital and more than $450 million in debt financing. It offers a credit card, issued by WebBank, and an app that helps people build credit and manage their money. Last year, Petal announced the launch of Prism Data, an enterprise offering that gives financial providers the same “infrastructure and intelligence” to improve underwriting decisions and expand access to credit.

Petal claims to have generated more than $80 million in annualized revenue last year, “putting the company on a path to reach profitability in 2024.”

CUNA Mutual participated in Petal’s $140 million Series D round.

“The first wave of fintech was about inventing new approaches. We’ve seen this explosion in activity with companies testing out new models, technologies, and financial products. Not every new experiment works. But for breakthrough technologies that have proven effective, like the cash flow underwriting we’ve developed at Petal and Prism Data, the time has come to expand to the mainstream. This has profound implications for financial inclusion, and we couldn’t be more excited to partner with forward-thinking industry leaders like Synchrony and Samsung to drive true innovation at scale.” – Jason Rosen, the CEO and co-founder of both Petal and Prism Data.

“At Synchrony, we have a deep history of using data to make informed lending decisions and create faster, seamless personalized customer experiences. The Prism Data platform is innovative in providing differentiated consumer insights, enabling financial institutions to make more data-driven decisions. We look forward to exploring partnerships with Petal and Prism Data to help improve access to credit.” – Trish Mosconi, EVP and chief strategy corporate development officer at Synchrony.

“Prism Data was founded on the belief that open banking, and access to consumer-permissioned bank account transactional data, will change the way consumer finance works—in credit, payments, banking, insurance, real estate, financial advising, and more. With open banking’s arrival in the U.S., that is becoming a reality. And as an independent company, Prism is well-positioned to partner with financial providers and give them the tools and infrastructure they need to create next-generation products and capabilities.” – Erin Allard, Prism’s general manager.