Credit Card Startup Petal Arranges $300 Million Debt Facility From Jefferies

September 18, 2019 | Alternative Investments

Credit card startup Petal, which promises credit for an irresponsible world, expanded its Jefferies debt facility.

Credit card startup Petal had arranged a $30 million debt facility with Jefferies a year ago. It is now expanding the arrangement to $300 million for boosting its card program. Jefferies is a global investment bank.

According to its website, Petal offers no-fees cards with a credit limit from $500 – $10,000. However, its APR, or Annual Percentage rate, range from 14.99% to 25.99% and cash backs from 1%-5%.

Notably, Petal does not require a credit history or an up-front deposit to qualify for a card, though it uses a special technology for credit evaluation.

“Our goal is to help Americans everywhere start building credit,” says Petal. “Tens of millions of Americans have no credit score at all, and millions more have short credit histories that may not tell the whole story.”

Expanded facility

The new debt arrangement will sustain Petal’s operations “for many quarters to come,” because the startup is showing stellar growth in card signups.

“It’s a massive vote of confidence in Petal’s mission to create a fundamentally better credit product experience,” Petal said, referring to the expanded debt facility from Jefferies.

Credit card startup Petal’s backers

Founded in 2016, Petal’s backers include Valar Ventures, Greyhound Capital, Third Prime Capital, RoseCliff Ventures and others. The startup has raised over $46 million in financing to date from venture capitalists, banks and institutions. It also has a debt facility with Silicon Valley Bank.

Novel technology sparks solid growth in card approvals

Petal said it witnessed exponential growth in card signups since its introduction last fall. Interestingly, more than 65% of customers are from the millennial and Gen Z categories.

Though Petal does not insist on credit history, it does use an innovative and proprietary technology that evaluates thousands of other financial data points, including the applicant’s earnings, bills and spending, and savings. These parameters do not normally figure in usual credit approval procedures.

The Petal credit card is issued by WebBank, member FDIC.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

Subscribe


Alt Insights

November 20, 2019

Prison For the Man Who Tried to Scam The Mooch

Prison For the Man Who Tried to Scam The Mooch
Shape

Latest Alternative Investment News

Bitcoin Plunges to Sub-$7000 Levels Before Recovering
November 22, 2019     Digital Assets, News

Bitcoin plummeted today after back-to-back crackdowns on virtual currencies by the Chinese Government. Yesterday, regulators in Shenzen, and today, in Shanghai, threatened to crack down on alleged illegal activities. The…

London Stock Exchange and PrimaryBid To Democratize Public Equity Offerings
November 22, 2019     FinTech, Latest News, News

The London Stock Exchange (LSE) has tied-up with fintech PrimaryBid to give retail investors access to share offerings. PrimaryBid’s internet-based investment platform will allow retail investors to digitally access share…

Ray Dalio Is Shorting the World
November 22, 2019     Hedge Funds, Investments, News

Hedge fund manager Ray Dalio is shoring the markets. The largest hedge fund in the world – Bridgewater Associates – has a $1.5 billion bet that the markets will fall…

A UK Legal Task Force Clarifies on Cryptoassets and Smart Contracts
November 22, 2019     Digital Assets, News

A UK Jurisdiction Task Force has issued a legal statement on cryptoassets and smart contracts. Issued under the aegis of the Law Tech Delivery Panel, the document is a result…