Petal, a New York, NY, and Richmond, VA-based credit card company for people to build credit and spend responsibly, raised $55m in Series C funding.
The round was led by Valar Ventures, with participation from Rosecliff Ventures, Afore Capital, RiverPark Ventures, Great Oaks Venture Capital, GR Capital, Nelstone Ventures, Abstract Ventures, Ride Ventures, The Gramercy Fund, Adventure Collective, Starta Ventures, and NFL star Kelvin Beachum, Jr. In total, Petal has now raised more than $100 million in equity funding.
The company intends to use the funds to expand its business reach.
Led by Jason Gross, CEO and co-founder, Petal is a new kind of credit card company which provides people with cash flow underwriting, as an alternative to credit scores, to make credit more accessible, and offers a digital experience that encourages members to build credit, avoid debt, and spend responsibly. Instead of using credit scores, the company has built proprietary technology that also analyzes banking history—measuring creditworthiness based on income, spending, and savings. This process, referred to as “Cash Scoring”, measures economic fundamentals that aren’t typically considered in a credit approval decision.
The Petal credit card is issued by WebBank, Member FDIC.