Credit card and financial technology company Petal closed a committed $200 million debt facility from Victory Park Capital. Petal also agreed to a multi-year extension of its existing term loan facilities and closed a new term loan facility for up to $20 million of incremental commitments with Trinity Capital. In addition, Petal has raised more than $20 million in new equity financing from its existing investors, building on the $35 million in funding Petal announced in May. With the addition of this new funding, Petal has raised more than $300 million in equity capital and more than $680 million in debt financing.
The new sources of capital will provide Petal with fuel to expand its credit card program, which provides access to Visa credit cards (issued by WebBank) to consumers who are new-to-credit without requiring established credit scores to qualify. To date, nearly 400,000 consumers have been approved for Petal credit cards, including more than 100,000 in 2022.
“It will soon be possible for any U.S. consumer to use their banking history to qualify for new and better financial services,” Jason Rosen, CEO and co-founder of Petal, said. “That’s great for consumers and an opportunity for Petal to make credit accessible to millions of people who have been overlooked and underserved for too long. We’re thankful to Victory Park Capital, Trinity and our existing investors, whose support will be crucial to our growth in this next chapter.”
“VPC is a strong supporter of Petal’s mission to make responsible, modern financial services available to everyone,” Jason Brown, a partner at Victory Park Capital, said. “We look forward to partnering with the Petal team as they work to expand the credit card program and serve even more underbanked consumers.”
