Petal, a fintech startup that offers credit cards to people without credit history, has recently secured $35 million in funding and announced the separation of its B2B division into an independent entity. The funding round was led by Valar Ventures, a venture capital firm co-founded by Peter Thiel, and included participation from Rosecliff Ventures, Afore Capital, RiverPark Ventures, Great Oaks Venture Capital, and other investors.
Petal was founded in 2016 with the mission of providing credit cards to people who have been overlooked by traditional banks due to their lack of credit history. The company uses alternative data sources, such as income and bill payment history, to assess creditworthiness and offer credit cards with competitive rates and rewards. Petal’s credit cards are designed to help people build credit from scratch or improve their credit scores.
With the new funding, Petal plans to expand its product offerings and reach more customers. The company has already launched a cashback program that rewards customers for paying their bills on time and plans to introduce new features such as budgeting tools and financial education resources. Petal also plans to expand its team and open a new office in Texas.
In addition to the funding news, Petal also announced the separation of its B2B division into an independent entity called Petal Insights. Petal Insights will focus on providing data analytics and consulting services to businesses that want to better understand their customers’ financial behavior. The division will be led by Jason Gross, who previously served as Petal’s Chief Revenue Officer.
The decision to separate the B2B division reflects Petal’s commitment to both its consumer and business customers. By creating a separate entity, Petal can better serve the needs of each group and provide more specialized services. Petal Insights will leverage Petal’s expertise in alternative credit scoring and data analysis to help businesses make more informed decisions about their customers.
Overall, Petal’s recent funding round and division separation demonstrate the company’s continued growth and success in the fintech industry. With its innovative approach to credit scoring and commitment to financial inclusion, Petal is poised to make a significant impact on the lives of millions of people who have been underserved by traditional banks.
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