Petal, the New York-based Fintech which makes a credit card for the consumers just starting out, has revealed that it has secured $30 Million in the funding round.
In a press release, Petal said that the Peter Thiel Valar Venture led the Series B round of funding. Some other investors include the Greyhound capital, which is also joining as new institutional investors, and the existing investor Third Prime Capital, Story ventures and Rosecliff Ventures, Afore Capital and RiverPark ventures. As a part of the capital raise, Petal also said that it had named two industry veterans to its senior leadership. Parris Sanz, a longtime senior executive with the CAN Capital, is joining as a Patel General Counsel, and Tom Greco, former SVP of the Customer operations at greenSky was named as the Vice President of the Customer Operations.
“Over the past several years, we too have also so much focused on building both an amazing team and a special product,” Petal Chief Executive Officer and Co-Founder Jason Gross said in a press release announcing the funding. “Now, with new funding and new leaders onboard we’re ready to scale our business and team meaningfully. We’re thankful for the support of our investors and partners, and look forward to helping millions of people build credit with Petal.”
Petal is also aiming to create an environment where the credit is accessible to everyone, which even includes those with no credit score or the past history of with the credit products. To underwrite customers, Petal looks at a person cash flow or money which is coming in and out, to determine the creditworthiness. In October, it launched the Petal Visa card, which helps the people build the credit and has zero fees which are associated with it. The Fintech claims to be the only credit card in the US that has no overdraft fees, international fee, late fee or any other fees.
Till today’s date, petal has secured more than $80 Million in both the equity and debt financing, which includes the $46.6 Million in the equity funding across the Petal Seed, Series A and Series B rounds of funding, and $34 Million in the debt financing raised to support the initial public rollout of the Petal Visa Card.