Credit card start-up Petal just completed a new financing round.
The New York City-based company announced a $300 million debt round from Jefferies on Tuesday, adding to existing venture capital investments from names like Peter Thiel’s Valar Ventures.
Petal offers a Visa rewards card to people with little to no credit history. Founder and CEO Jason Gross said the idea was to offer younger customers, who often haven’t established credit, a rewards-based card. Instead of using a traditional FICO score, it uses other data and metrics to assess whether or not someone can repay the loans. Companies like Square, Stripe and PayPal are leaning on similar tactics to underwrite small business loans. [ CNBC ]