Petal, a credit card and financial technology company based in New York and Richmond, Virginia, has successfully raised $35 million in funding. The investment round was led by Valar Ventures and featured participation from Story Ventures, Core Innovation Capital, and RiverPark Ventures, as well as strategic investments from Synchrony and Samsung Next.
The funding will be divided between Petal and Prism Data, a separate B2B-focused data infrastructure and analytics subsidiary that was spun off from the parent company. Petal, led by CEO Jason Rosen, has pioneered cash flow underwriting as an alternative to traditional credit scores, aiming to make credit more accessible to consumers. With a focus on modern digital experiences, Petal encourages users to build credit, avoid debt, and engage in responsible spending.
Nearly 400,000 consumers have been approved for a Petal credit card to date, with over 100,000 new cards approved in 2022 alone. The company generated more than $80 million in annualized revenue last year and is on track to achieve profitability by 2024. Petal credit cards are issued by WebBank.
The spinoff creates two distinct financial technology companies that leverage cash flow underwriting and consumer-authorized financial data—often referred to as “open banking data”—to offer products that increase consumer access to financial services.
Prism Data’s open banking infrastructure and analytics platform assist clients in enhancing underwriting capabilities, reducing first-party fraud, and effectively managing portfolio servicing. Since its launch, Prism has gained considerable traction, securing over a dozen clients and partners and completing more than two dozen successful pilots, including some of the largest banks in the United States. Prism’s CashScore has been used to inform nearly $2 billion in credit originations for hundreds of thousands of consumers thus far.