US-based fintech Petal has closed a $200 million debt facility from Victory Park Capital and secured a new term loan facility with Trinity Capital, as well as additional equity funding from existing investors.
The capital injection will fund the expansion of the Petal credit card program, which provides access to Visa credit cards, issued by WebBank, to consumers who are new-to-credit, without the need for credit scores to qualify.
Petal has 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.
It has also raised more than $20 million of new equity financing from existing investors, building on the $35 million it announced in May this year.
Founded in 2016, Petal uses Open Banking data to help individuals establish and build credit.
“It will soon be possible for any US consumer to use their banking history to qualify for new and better financial services,” said Jason Rosen, Petal’s chief executive officer and co-founder.
“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.”
To date, nearly 400,000 consumers have been approved for Petal credit cards, of which, more than 100,000 new cards were approved in 2022.
Jason Brown, partner at Victory Park Capital, added: “VPC is a strong supporter of Petal’s mission to make responsible, modern financial services available to everyone.
“We look forward to partnering with the Petal team as they work to expand the credit card program and serve even more underbanked consumers.”