Petal, a NYC- and and Richmond, VA-based credit card company created to help people build credit and spend responsibly, raised a $140m Series D round of funding.
The round was led by Tarsadia Investments, with participation from Valar Ventures, CUNA Mutual, Encore Bank, Volery Capital Partners, Gopher Asset Management, RiverPark Ventures, Afore Capital, Gaingels, and a number of other new and existing investors.
Led by Jason Gross, co-founder and CEO, Petal was established to help people build credit, not debt, by providing access to Visa® credit cards (issued by WebBank, Member FDIC). People can qualify for Petal cards even if they’ve never used credit before. Instead of relying solely on 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 “CashScoring™”, measures cash flows and other economic fundamentals that aren’t typically considered in a credit approval decision. This helps more people qualify and enables Petal to make credit accessible on terms tailored to each person’s unique financial situation.
The Petal credit card is issued by WebBank, Member FDIC.
The company also announced the hiring of Erin Allard, who previously held executive positions with Bloom Credit, Green Dot, and The Bancorp. Allard will lead its newly formed B2B data intelligence business, Prism Data, as general manager.
Today, there are nearly 300,000 approved Petal credit cards. The company’s team has more than 160 employees.