Total amount raised
$992.6 Million
Latest funding date
08/01/2023
Location
Petal has successfully navigated 14 funding rounds, attracting investment from 58 investors, including notable names like Private Ventures Group and Trinity Capital. The company offers a range of credit card products designed to help individuals build and manage their credit responsibly.
Petal's platform features various card options with benefits such as no annual fees, cash back rewards, and an app for tracking credit scores and spending insights. Keep reading to explore the intricacies of Petal's fundraising journey and the investors backing this innovative platform.
What Is Petal?
Petal is a financial technology company based in New York, New York, offering three Visa credit card products aimed at underserved consumers. The company operates in the financial services, fintech, credit cards, and machine learning industries.
Founded by a team of innovators, Petal has a small but dedicated workforce of 1-10 employees. The company has been acquired by Tilt (formerly Empower) and continues to focus on providing responsible credit solutions for modern consumers.
How Much Funding Has Petal Raised?
- Series B
- Amount Raised: USD 30,000,000
- Date: January 2019
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand Petal's credit card offerings and enhance its technology platform.
- Debt Financing
- Amount Raised: USD 300,000,000
- Date: September 2019
- Lead Investors: Jefferies
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the growth of Petal's credit card program and increase its lending capacity.
- Secondary Market
- Amount Raised: USD 1,200,000
- 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.
- Series C
- Amount Raised: USD 55,000,000
- Date: September 2020
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and further develop Petal's credit card products.
- Debt Financing
- Amount Raised: USD 126,600,000
- Date: February 2021
- Lead Investors: Silicon Valley Bank, Trinity Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand Petal's credit card program and increase its lending capacity.
- Series D
- Amount Raised: USD 140,000,000
- Date: January 2022
- Lead Investors: Tarsadia Investments
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and enhance Petal's technology platform.
- Series Unknown
- Amount Raised: USD 1,200,000
- Date: January 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operations and product development.
- Series Unknown
- Amount Raised: USD 35,000,000
- Date: May 2023
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand Petal's credit card offerings and enhance its technology platform.
- Debt Financing
- Amount Raised: USD 220,000,000
- Date: August 2023
- Lead Investors: Victory Park Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand Petal's credit card program and increase its lending capacity.
- Series Unknown
- Amount Raised: USD 20,000,000
- Date: August 2023
- Lead Investors: Trinity Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operations and product development.
Total Amount Raised: USD 928,800,000. Current Valuation: Not publicly disclosed.
Key Investors
- Trinity Capital
- Details: Trinity Capital is a leading provider of diversified financial solutions for growth-stage companies. They are listed on NASDAQ under the symbol TRIN.
- Investment Focus Areas: Growth-stage companies, term loan facilities, financial solutions.
- Notable Investments: Petal, Matterport, Lucid Motors.
- Victory Park Capital
- Details: Victory Park Capital is an SEC-registered credit manager founded in 2007, headquartered in Chicago, Illinois, with additional offices in New York, Los Angeles, San Francisco, and London.
- Investment Focus Areas: Custom financing solutions, private credit, companies with strong corporate governance, growth trajectory.
- Notable Investments: Petal, Avant, Bread Financial.
- Valar Ventures
- Details: Valar Ventures is a venture capital firm co-founded by Peter Thiel, focusing on early-stage investments in technology companies.
- Investment Focus Areas: Fintech, technology, consumer internet.
- Notable Investments: TransferWise, N26, Petal.
- Tarsadia Investments
- Details: Tarsadia Investments is a private investment firm that provides capital and strategic support to growth-stage companies.
- Investment Focus Areas: Healthcare, technology, consumer products, real estate.
- Notable Investments: Petal, Vicarious Surgical, Impossible Foods.
- Jefferies
- Details: Jefferies is a global investment banking firm providing a full range of investment banking, advisory, sales and trading, research, and wealth management services.
- Investment Focus Areas: Investment banking, capital markets, asset management.
- Notable Investments: Petal, WeWork, Snap Inc.
What's Next for Petal?
Petal stands at the cusp of significant growth, driven by its innovative cash flow underwriting approach. With nearly 400,000 consumers already approved for Petal credit cards, the company is poised to expand its reach further, especially as traditional banks increasingly reject applicants with lower credit scores. The recent $200 million debt facility from Victory Park Capital and additional term loans provide substantial capital to fuel this expansion.
Future fundraising opportunities appear promising, with potential for additional equity and debt financing to support Petal's growth. The company is well-positioned to attract new investors interested in fintech solutions that enhance credit accessibility. However, Petal may face challenges such as competition from traditional financial institutions and other fintech companies, as well as navigating regulatory changes that could impact its operations.
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