American credit card startup Petal has closed a debt facility of over $125m to expand its credit card programme.
Silicon Valley Bank (SVB) offered $100m of the facility while venture debt and equipment financing provider Trinity Capital contributed over $26.6m. This marks the credit card firm’s first asset-backed facility with the two firms.
SVB managing director of Warehouse Lending Brian Foley said: “SVB is proud to support the Petal team with this warehouse facility as they strive to enable individuals to access and build credit responsibly.
“Reaching 100,000 cards approved is a significant growth milestone and we look forward to continuing to work with Petal as the company matures to the next phase of growth.”
The credit card fund has now raised over $100m in equity funding and closed over $440m in debt.
In September 2019, Petal received a $300m debt facility from investment bank Jefferies.
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Last September, the firm raised $55m in a Series C funding round, led by Peter Thiel-backed venture capital (VC) fund Valar Ventures.
In October last year, the firm launched a new Visa credit card called Petal 1 targeted at customers with poor credit history.
The company also offers the Petal 2 Visa card, a no-fee credit card with cash back. As of now, over 100,000 people have been approved for the two cards.
Petal vice-president of capital markets Nate Huebscher said: “We are excited to expand our relationships with both SVB and Trinity through a truly innovative capital solution that will bolster Petal’s balance sheet and enable us to pursue our ambitious goals for 2021 and beyond.
“The closing of the transaction, structured during the height of COVID, represents a critical milestone for Petal in our efforts to expand credit access.”