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Credit card issuer Petal secures $30m investment

Petal, a US-based fintech firm that offers credit cards to consumers without credit scores, has received $30m in financial assistance.

The Series B funding was led by venture capital fund Valar Ventures, who also led Petal’s $13m Series A funding round last year.

Valar was joined by Greyhound Capital, Third Prime Capital, Rosecliff Ventures, Story Ventures, RiverPark Ventures and Afore Capital in the new fundraising.

With the exception of Greyhound, all other investors in Series B are existing backers of the credit card firm.

In October 2018, the firm raised $34m to support the launch of its Petal Visa card.

Petal CEO Jason Gross said: “Over the past two years, we’ve focused on building both an amazing team and a special product.

“Now, with new funding and new leaders onboard we’re ready to meaningfully scale our business and team.”

In order to assess the creditworthiness of a consumer, Petal focuses more on the cashflow aspect instead of traditional credit scores.

The firm leverages machine learning to evaluate the digital financial record of consumers.

Notably, Petal does not charge fees but makes money through transaction fees and consumer interest payments.

Till date, the firm has received over $80m in equity and debt funding.

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