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Credit startup Petal raises USD 140 mln

Thursday 6 January 2022 13:00 CET | News

US-based credit startup Petal has raised USD 140 million in a Series D round led by Tarsadia Investments, the company’s new valuation being now USD 800 million.

Other investors were Valar Ventures (which led its Series C), 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 two Visa credit card products aimed at underserved consumers with little to no credit history. The startup says its goal is to help people build credit. It offers that credit based on cash flow rather than credit scores.

Its latest raise follows a year in which Petal has tripled its user base and more than quadrupled its revenue, from USD 11 million to nearly USD 50 million. Today, there are nearly 300,000 Petal cardholders.

Petal operated under stealth until launching its first product, and announcing its first funding, in September 2017. The company says its technology analyses banking history — assessing creditworthiness by taking into account a person’s income, spending and savings to help people qualify even if they’ve never used credit before.

Petal’s CashScore became a product of its own in 2021 as the company announced the launch of its first B2B enterprise service, Prism Data. 


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Keywords: funding, banks, startup, credit card, Visa
Categories: Payments & Commerce
Companies: Petal, Tarsadia Investments
Countries: United States
This article is part of category

Payments & Commerce

Petal

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Tarsadia Investments

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