Petal, a startup with a mission to shake up the world of credit cards, is poised for more expansion after nailing down another big commitment from its investors.
The New York-based FinTech, which bases credit decisions on an individual’s cash flow rather than standard industry metrics, has nailed down an additional $55 million, pushing the total amount of venture capital committed to the company to the $100 million mark.
Valar Ventures, which has made a name for itself investing in promising FinTechs, led the Series C round of funding.
Petal is now hoping to bring on board hundreds of thousands of new customers over the next two years, according to TechCrunch.
The FinTech is seeking to advantage of an opening created by the coronavirus crisis, which has forced banks and other traditional players to pull back. Petal contends that its cash-flow model has held up well amid the economic downturn.
Petal’s system for judging creditworthiness – which it calls “cash scoring” – focuses on the banking industry, looking closely at not just an applicant’s income, but her spending and savings as well.
Once approved, customers gain access to a “high-quality Visa® credit card.” They do not need to have had a credit card previously to qualify, Petal noted in the press release.
“Traditional credit scores have become less reliable in the COVID economy, forcing mainstream banks to significantly scale back access to credit at a time when many people need it most,” said Jason Gross, Petal’s CEO and co-founder. “Cash flow scoring allows Petal to continue making credit available even in these volatile economic conditions.”
This is Valar’s third major investment in Petal; the firm led a $30 million Series B round of funding in the company last year and the initial Series A round in 2018.
“We’re pleased to once again invest in Petal,” said James Fitzgerald, a founding partner with Valar Ventures. “They have created a better and more modern credit experience, and a game-changing technology platform that’s well-matched to these times.”