Total amount raised
$992.6 Millions
Latest funding date
08/01/2023
Location
Petal offers credit cards designed to help users build credit responsibly, featuring no fees, cash back rewards, and an app for managing credit effectively. The platform provides various card options, including Petal 1, Petal 2, and Petal 1 Rise, each tailored to different user needs.
Keep reading to explore the intricacies of Petal's fundraising journey and the investors backing this innovative platform.
What Is Petal?
Petal is a company dedicated to providing credit cards that help individuals build credit responsibly. They offer various card options with benefits such as no fees, cash back rewards, and tools to track and improve credit scores.
Unfortunately, the specific founding year, location, names of the founders, and the number of employees are not available from the provided sources. The information requested was not found in the provided sources.
Petal emphasizes leveraging bank data for better approval chances and offers features like mobile wallet compatibility and contactless payment technology. Their app also provides real-time transaction notifications and credit line increases through the Leap program.
How Much Funding Has Petal Raised?
- Venture Round
- Amount Raised: $1.2M
- Date: January 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's early-stage growth and product development.
- Series D
- Amount Raised: $140M
- Date: January 2022
- Lead Investors: Tarsadia Investments
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the Petal credit card program and reach more consumers.
- Debt Financing
- Amount Raised: $126.6M
- Date: February 2021
- Lead Investors: Silicon Valley Bank, Trinity Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and operational needs.
- Series C
- Amount Raised: $55M
- Date: September 2020
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the business and enhance product offerings.
- Secondary Market
- Amount Raised: $1.2M
- Date: February 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to early investors and employees.
- Debt Financing
- Amount Raised: $300M
- Date: September 2019
- Lead Investors: Jefferies
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the expansion of the credit card program.
- Convertible Note
- Amount Raised: Not publicly disclosed
- Date: April 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide additional working capital.
- Venture Round
- Amount Raised: $35M
- Date: May 2023
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the Petal credit card program and reach more consumers.
- Debt Financing
- Amount Raised: $220M
- Date: August 2023
- Lead Investors: Victory Park Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the Petal credit card program and reach more consumers.
- Venture Round
- Amount Raised: $20M
- Date: August 2023
- Lead Investors: Trinity Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the Petal credit card program and reach more consumers.
Total Amount Raised: $899M. Current Valuation: Not publicly disclosed.
Key Investors
- Victory Park Capital (VPC)
- Details: Victory Park Capital is a global alternative investment firm specializing in private credit. Founded in 2007, it is headquartered in Chicago, Illinois, with additional resources in New York, Los Angeles, San Francisco, and London.
- Investment Focus Areas: Private credit, companies with strong corporate governance, various industries worldwide.
- Notable Investments: Not publicly disclosed.
- Trinity Capital Inc.
- Details: Trinity Capital Inc. is a leading provider of diversified financial solutions for growth-stage companies. It is publicly traded on NASDAQ under the ticker symbol TRIN.
- Investment Focus Areas: Growth-stage companies, diversified financial solutions.
- Notable Investments: Not publicly disclosed.
- Valar Ventures
- Details: Valar Ventures is a venture capital firm that invests in early-stage technology companies. It was co-founded by Peter Thiel, Andrew McCormack, and James Fitzgerald.
- Investment Focus Areas: Fintech, software, consumer internet.
- Notable Investments: TransferWise, Xero, N26.
- Tarsadia Investments
- Details: Tarsadia Investments is a private investment firm that focuses on long-term investments in various sectors. It is based in Newport Beach, California.
- Investment Focus Areas: Healthcare, technology, real estate.
- Notable Investments: Not publicly disclosed.
- Silicon Valley Bank
- Details: Silicon Valley Bank provides various financial services to startups and growth companies. It is headquartered in Santa Clara, California.
- Investment Focus Areas: Technology, life sciences, venture capital.
- Notable Investments: Not publicly disclosed.
What's Next for Petal?
Petal stands at the cusp of significant growth opportunities, driven by its mission to make credit accessible to underserved consumers. With nearly 400,000 consumers already approved for Petal credit cards, the company aims to expand its reach further, leveraging banking history to qualify more individuals for high-quality financial services. This expansion is bolstered by recent funding, including a $200 million debt facility from Victory Park Capital and additional equity financing.
Future fundraising opportunities appear promising as Petal continues to attract investor interest. The company has already raised over $300 million in equity capital and more than $680 million in debt financing, indicating strong support for its innovative approach to creditworthiness assessment. Regulatory changes, such as the upcoming CFPB rulemaking on Dodd-Frank Section 1033, may further enhance Petal's ability to offer alternative credit assessment methods.
However, Petal faces challenges, including navigating the regulatory landscape and competing with traditional financial institutions and other fintech companies. Ensuring compliance with new CFPB rules and managing the risks associated with extending credit to consumers with limited or no credit history will be crucial for sustained growth. Despite these challenges, Petal's innovative approach and strong investor backing position it well for future success.
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