Petal, a New York City-based creator of an innovative credit card for people, raised $34M in financing.
– Jefferies, which provided a variable funding note facility, and
– Silicon Valley Bank, which provided an operating company facility.
The company intends to use the funds for the public roll-out of the Petal Visa credit card.
Led by CEO and co-founder Jason Gross, Petal was created to enable people to build credit, not debt, by providing access to a Visa® credit card that they can qualify for even if they’ve never used credit before. Instead of relying on credit scores, Petal has built proprietary technology that also analyzes banking history—measuring creditworthiness based on income, spending, and savings. This process, referred as “Cash Scoring,” measures economic fundamentals that aren’t typically considered in a credit approval decision. Once approved, Petal provides customers with all the tools they need to build credit. This includes a mobile app where members can automate payments, track their credit scores, manage subscriptions, and stay on top of their spending.
Have a look at the product here.