New York-based fintech Petal secures $200 million debt facility from Victory Park Capital and a $20 million term loan facility from Trinity Capital, along with $20 million in new equity financing to expand its credit card programme.
Facts
- Petal secures a $200 million debt facility from Victory Park Capital (VPC) and a new term loan facility for up to $20 million of incremental commitments with Trinity Capital.
- Additionally, it raises $20 million in new equity financing from existing investors, following its Valar Venture-led funding round in May, bringing its total equity capital raised to $300 million and debt financing to over $450 million.
- The fresh funding will be used to further develop and expand Petal’s credit card programme.
- Petal’s credit card programme enables users to create a credit history based on their banking history, using cash flow underwriting to qualify for credit during a period of high credit rejections.
- The company takes a holistic view of a user’s spending patterns and financial history to determine creditworthiness, offering WebBank-issued Visa credit cards.
- So far, Petal has approved nearly 400,000 people for its credit cards, with 100,000 approvals in the previous year. 40% of its users had thin or no credit history, and many experienced prior credit rejections from major banks.
- Petal’s CEO and co-founder, Jason Rosen, emphasizes that using banking history to qualify for financial services will benefit consumers and open up credit access to millions who have been overlooked and underserved.
