Petal, a digital lender that offers credit cards to individuals with poor credit history, has raised USD 35 million in a strategic funding round led by Valar Ventures, with participation from Story Ventures, Core Innovation Capital, Synchrony Bank, and Samsung Next among others. The total funds raised by the company stand at USD 752.6 million following this funding round.

The fresh funds will be split equally between Petal and Prism Data, which is Petal's B2B data infrastructure analytics subsidiary that it announced is being spun off.

Established in 2021, Prism Data provides cash flow underwriting technology called “CashScore,” which was originally developed for Petal's use, to other banks and financial institutions. This allows them to develop new credit products, improve underwriting capabilities, minimize first-party fraud, and better manage the servicing of their portfolios. Prism Data has already signed more than a dozen clients, including some of the country’s largest banks, and it has been used in ~USD 2 billion worth of credit originations.

As of May 2023, Petal had approved nearly 400,000 customers for its credit card, including more than 100,000 new approvals in 2022. The company reported that it has achieved an annualized revenue of over USD 80 million in 2022, keeping it on track to achieve profitability in 2024.