Petal, a New York-based startup, that offers credit card services to young people and those without credit, just earned $34 million in its latest funding round that wrapped up earlier this month.
A report from New York Business Journal states that the third and latest round now brings Petal’s overall funding to around $50 million following a $13 million round preceding this one in which Peter Thiel and his fund Valar Ventures were big players.
The company that was founded in 2016 offers credit card services to people who would generally not pass for normal credit applications. Another big target demographic for the startup has been immigrants, who either can’t apply for credit cards or don’t have the existing credit history to get approved.
“We want to approve as many people as possible, but today we’re really built more for people that are new to credit and just establishing credit,” Petal CEO Jason Gross said, according to New York Business Journal. “Chances are much higher that you will be approved if you haven’t had missed payments or bankruptcy.”
The no-fee credit card is made available through Petal on its mobile app.
The latest round of successful funding came via investments from Jefferies and Silicon Valley Bank. Startup heads have said that with the $34 million, they will be able to double the amount of employees that they currently have. This should be able to help facilitate the company’s ultimate mission of providing financial opportunities to people who may not normally have them, Gross said.
“That has to do with critical changes in the market and access to do with credit post-financial crisis,” Gross said in July’s funding round, according to Tech Crunch. “The way we think about credit scoring is that it’s sorely outdated; its tech was developed 60 years ago based on a limited subset of financial data that was the only info at the time. It disadvantages certain groups in society in particular.”