US FinTech company Petal, a 'new kind of credit card company built to help people financially succeed' has today raised $34 million in new funding from global investment bank Jefferies and Silicon Valley Bank. This funding will support the public roll-out of the Petal Visa credit card that launched today. The company also said that 100,000 people who had already joined a waiting list in 2018, who will (obviously) be the first holders of the card. This sounds like a big deal for US FinTech startups, currently struggling to keep up with those in Europe. There are a number of reasons why. US tech behemoths such as Amazon, Facebook, Apple and Google tend to discourage new opposition. Their ongoing forays into real-time payment apps and mobile banking services are frightening in their possible scope.
Petal’s no-fee credit card for the credit score-less is now open to the public
Petal, the startup credit card company that’s offering a no-fee credit line to people without a credit history, is now publicly available. Launched earlier this year by co-founders Jason Gross, Andrew Endicott, David Ehrich, and Jack Arenas, Petal has received a $34 million credit facility from Jeffries and Silicon Valley Bank to bring its consumer lending product to the masses. That money will take Petal beyond the few thousand customers that have trialed the company’s credit card in a pre-release to broad distribution for applicants.
Petal Raises $13 Million To Give Starter Credit Cards To Millennials
Petal, a financial technology upstart that aims to provide credit cards to young people and others who lack a credit history, has raised $13 million, it said on Wednesday. The Series A round was led by billionaire Peter Thiel's Valar Ventures. The funds will be used to roll out the credit card nationwide; it is currently only available via waitlist, where it has attracted some 40,000 people. Petal is among a new crop of companies that are roping in non-traditional data in their underwriting to approve millennials, immigrants and other consumers who are typically turned away from banks and lenders because of their limited credit histories.
Petal nabs $13M from Peter Thiel’s Valar Ventures to get credit cards to people without credit scores
Fledgling fintech startup Petal has raised $13 million in a series A round of funding led by Peter Thiel’s Valar Ventures. Other participatory investors include Third Prime Capital, RiverPark Ventures, The Social Entrepreneurs’ Fund, Brooklyn Bridge Ventures, Afore Capital, Rosecliff Ventures, Great Oaks Venture Capital, New Ground Ventures, Abstract Ventures, Ride Ventures, Story Ventures, and The Gramercy Fund.
New Credit Card Option for Those With Scant Credit Histories
A New York start-up aims to use everyday financial information to qualify people with scant or no credit histories for its credit cards. The company, called Petal, considers an applicant’s standard credit scores, when available. But it also analyzes their digital financial records, like checking accounts or, in some cases, prepaid debit cards, to rapidly assess their income and spending habits. “It uses more financial information to make a credit decision,” said Jason Gross, chief executive and co-founder of Petal.